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Post Independence India (Shashidthakur23.Wordpress - Com)
Post Independence India (Shashidthakur23.Wordpress - Com)
INDEPENDENCE
INDIA
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Sl. No. TOPICS Pg. No.
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1. Partition and Integration of Princely States ...................................... 5-9
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2. Making of the Constitution ............................................................. 10-15
AC I 3. The Nehru Era (19471964) ........................................................... 16-23
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4. Lal Bahadur Shastri (19641966) ................................................... 24-26
10. Overview of Economic & Foreign Policy since 1991 .................... 58-64
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The era after Indias independence from colonial base remained in India, including the largest cities
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rule starts with its partition into two halves India of Delhi, Bombay and Calcutta. The economy of
and Pakistan. Lord Mountbatten became the first Pakistan was chiefly agricultural, and controlled
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Governor General of free India and M.A. Jinnah by feudal elites. The great advantage enjoyed by
that of Pakistan. The transition was violent, with the Indian National Congress was that it had
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blood curling massacres all over the country, ample worked hard for 40 years to reconcile differences
proof to the historic acrimony that the Indians and achieve some cohesion among its leaders. The
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shared within themselves. heartland of support for the Muslim League,
however, lay in central north India (Uttar Pradesh)
AC I PARTITION: THE TRAGEDY which was not included within Pakistan.
The Partition of India ranks, beyond doubt, as
India and Pakistan won independence in
one of the 10 greatest tragedies in human history.
August 1947, following a nationalist struggle lasting
For the Punjab alone, the loss of life is estimated
nearly three decades. It set a vital precedent for
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somewhere between 500,000-800,000 and 10
the negotiated winding up of European empires
million people were forced to flee for their lives.
elsewhere. Unfortunately, it was accompanied by
More importantly, after World War II the first case
the largest mass migration in human history of some
of ethnic cleansing took place in the Punjab.
10 million. As many as one million civilians died in
Therefore, it bore the brunt of the partition violence.
the accompanying riots and local-level fighting,
Thus at the end of 1947 all traces of a Muslim
particularly in the western region of Punjab which
presence in the Indian East Punjab were wiped
was cut in two by the border. One explanation for
out, except for some Muslims remaining in the tiny
the chaos in which the two nations came into being,
princely state of Malerkotla. In the Pakistani West
is Britain's hurried withdrawal with the realisation
Punjab, Hindus and Sikhs became conspicuous by
it could ill-afford its over-extended empire.
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their absence.
Pakistan celebrated its independence on 14
Fear of an uncertain future, lack of
August and India on 15 August, 1947, the border
communication between the leaders of the estranged
between the two new states was not announced
communities, the waning authority of the British
until 17 August. It was drawn up by a British
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resolve them through renegotiations. Since August the Muslim migrants to Pakistan from Punjab, U.P.
of 1947, India and Pakistan have fought three major and Rajasthan and could therefore be resettled on
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wars and one minor war over territorial disputes. land.
The boundary line in Jammu and Kashmir is
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This was not the case in West Bengal. In
particularly troubled. The partition of India is a
addition, because of linguistic affinity, it was easier
signal event in world history, not merely in the
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history of the Indian sub-continent. for Punjabi and Sindhi refugees to settle in todays
Himachal Pradesh and Haryana and western U.P.,
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As a result of Partition, 8 million refugees had Rajasthan and Delhi. The resettlement of the
come into the country from what was now refugees from East Bengal could take place only in
Pakistan. These people had to be found homes and Bengal and to a lesser extent in Assam and Tripura.
jobs. Then there was the problem of the princely
AC I As a result, a very large number of people who
states, almost 500 of them, each ruled by a had been engaged in agricultural occupations before
maharaja or a nawab, each of whom had to their displacement were forced to seek survival in
be persuaded to join the new nation. The problems semi-urban and urban contexts as the underclass.
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of the refugees and of the princely states had to be
addressed immediately. In the longer term, the new To the problem of unity was added the problem
nation had to adopt a political system that would of development. At Independence, the vast majority
best serve the hopes and expectations of its of Indians lived in the villages. Farmers and
population. peasants depended on the monsoon for their
survival. So did the non-farm sector of the rural
Indias population in 1947 was large, almost economy, for if the crops failed, barbers, carpenters,
345 million. It was also divided. There were weavers and other service groups would not get
divisions between high castes and low castes, paid for their services either. In the cities, factory
between the majority Hindu community and workers lived in crowded slums with little access
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Indians who practiced other faiths. The citizens of to education or healthcare. Clearly, the new nation
this vast land spoke many different languages, wore had to lift its masses out of poverty by increasing
many different kinds of dress, ate different kinds the productivity of agriculture and by promoting
of food and practiced different professions. How new, job-creating industries. Unity and
could they be made to live together in one nation- development had to go hand in hand. If the
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live long and that he would invoke the aid of the Junagadhs accession. On the other hand, the people
all-embracing Power to take me away from this of the state were against the rulers decision. They
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vale of tears rather than make me a helpless organized a popular movement, forced the Nawab
witness of the butchery by man become savage, to flee and established a provisional government.
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whether he dares to call himself a Muslim or a Indian troops marched into the state. A plebiscite
Hindu or what not. was held in the state in February 1948 which went
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overwhelmingly in favour of joining India.
The celebrations of independence had hardly
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died down when on 30th January, 1948, a radical The state of Kashmir was bordered on both
minded Hindu, Nathuram Godse, assassinated India and Pakistan. Its ruler Hari Singh was a
Gandhiji at Birla house, just before his evening Hindu, while nearly 75 per cent of the population
prayers. The whole nation was shocked and was Muslim. Hari Singh did not accede either to
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stricken with grief and communal violence retreated
from the minds of men and women. Expressing
India or Pakistan. He hoped to stay out of both
and to continue as an independent ruler. On 22
the nations sorrow, Nehru spoke over the All India October, with the onset of winter, several Pathan
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Radio: tribesman, led unofficially by Pakistani army
officers, invaded Kashmir and rapidly pushed
Friends and comrades, the light has gone out
towards Srinagar, the capital of Kashmir. In panic,
of our lives and there is darkness everywhere . . .
on 24 October, the Maharaja appealed to India for
The light has gone out, I said, and yet I was wrong.
military assistance. Within days, acting under
For the light that shone in this country was no
pressure, the Maharaja acceded to India and signed
ordinary light . . . that light represented something
the instrument of accession with India. After
more than the immediate present; it represented
accession India decided to send troops to Srinagar.
the living, the eternal truths, reminding us of the
In order to avoid a full-scale war between India
right path, drawing us from error, taking this
and Pakistan, the Government of India agreed, on
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region of the state from the latter half of 1946. On force at the date of the passing of this Act between
13 September, 1948, the Indian army moved into His Majesty and the rulers of Indian States", so the
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Hyderabad. The Nizam surrendered after three states were left to choose whether to join India or
days and acceded to the Indian Union in November. Pakistan or to remain independent. Jammu and
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The government of India retained Nizam as formal Kashmir, the largest of the princely states, had a
ruler of the state or its Rajpramukh, was given a predominantly Muslim population, while having a
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privy purse, and permitted to keep most of his Hindu ruler, Maharaja Hari Singh. On partition
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wealth. Pakistan expected Kashmir to be annexed to it.
In return for their surrender of all power and In October 1947, Muslim revolutionaries in
authority, the rulers of major states were given western Kashmir and Pakistani tribals from
privy purses in perpetuity, free of all taxes. The
AC I Dir entered Kashmir, intending to eliminate
privy purse amounted to Rs. 4.66 crore in 1949 Dogra rule. Unable to withstand the invasion, the
and were later guaranteed by the constitution. The Maharaja signed the Instrument of Accession on 25
ruler were allowed succession to the gaddi and October, 1947 that was accepted by the government
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retained certain privileges such as keeping their of India on 27 October, 1947.
titles, flying their personal flags and gun salutes on
ceremonial occasion. However, later Indira Gandhi INDO-PAKISTANI WAR (1947)
abolished most of the above mentioned concessions.
After rumours that the Maharaja supported the
After waiting patiently for international opinion
annexation of Kashmir by India, militant Muslim
to put pressure on Portugal, Nehru ordered Indian
revolutionaries from western Kashmir and Pakistani
troops to march into Goa on the night of 17
tribesmen made rapid advances into the
December, 1961. The governor-General of Goa
Baramulla sector. Maharaja Hari Singh of Kashmir
immediately surrendered without a fight and the
asked the government of India to intervene.
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up monitoring of the conflict in Kashmir. Following MYTH OF NEHRU AND PATEL RIVALRY
the set-up of the United Nations Commission for
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India and Pakistan (UNCIP), the UN Security Nehru and Vallabhbhai Patel were not
Council passed Resolution 47 on 21 April, 1948. opponents and adversaries. This myth is promoted
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The resolution imposed an immediate cease-fire and by advocates of a strong India, by those who
called on the Government of Pakistan 'to secure believe that Nehru was soft on Pakistan, soft on
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the withdrawal from the state of Jammu and China, and soft on the minorities. It is usually
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Kashmir of tribesmen and Pakistani nationals not accompanied by a subsidiary myth, namely, that
normally resident therein who have entered the Patel would have made a better Prime Minister
state for the purpose of fighting.' It also asked than Nehru. In truth, Nehru and Patel worked
Government of India to reduce its forces to the superbly as a teamwho, in the first, formative
minimum strength, after which the circumstances years of independence, effectively united and
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for holding a plebiscite should be put into effect strengthened India. Of course, they differed by
'on the question of Accession of the state to India temperament and ideology. But these differences
or Pakistan.' However, both India and Pakistan were subsumed and transcended by commitment
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failed to arrive at a Truce agreement due to to a common ideal: namely, a free, united, secular
differences in interpretation of the procedure for and democratic India. There were some things
and extent of demilitarization one of them being Nehru could do better than Patelcommuning
whether the Azad Kashmiri army is to be disbanded with the masses, relating to the world, assuring
during the truce stage or the Plebiscite stage. vulnerable groups (such as Muslims, tribals, and
Dalits) that they enjoyed equal rights with other
In November 1948, The Indian and Pakistani Indians. There were some things Patel could do
governments agreed to hold the plebiscite, but better than Nehrudealing with the princes,
Pakistan did not withdraw its troops from Kashmir, nurturing the Congress party, carrying along
thus violating the conditions for holding the dissidents in the Constituent Assembly. Each knew
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plebiscite. In addition, the Indian Government the others gifts, each took care not to tresspass on
distanced itself from its commitment to hold a the other persons turf. That is how, together, they
plebiscite. India proposed that Pakistan withdraw built India anew out of the ruins of Partition. Along
all its troops first, calling it a precondition for a with the Kashmir issue, an important sources of
plebiscite. Pakistan rejected on the grounds that
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Indias independence represented for its people total and women suffered immense social
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the start of an epoch that was imbued with a new oppression in the family. Economic development
vision. In 1947, the country commenced its long and a democratic political order were to be
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march to overcome the colonial legacy of economic accompanied by rapid social transformation so that
underdeveloped-prevalence of disease and stark existing gross economic, caste and gender
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social inequality and injustice. 15 August, 1947 was inequalities were rapidly eliminated, poverty was
only the first stop, the first break-the end of colonial removed and the levels of living raised. The
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political control. Centuries of backwardness were structure of Indian society was to be rapidly
now to be overcome, the promises of the freedom transformed in a broadly socialist direction.
struggle to be fulfilled, and peoples hope to be
met. EVOLUTION OF THE CONSTITUTION
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The tasks of nation-building were taken up by
the Indian people and their leaders with a certain
The national movement had aroused
expectations of a rapid rise in personal and societal
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elan and determination and with confidence in
prosperity of social and economic equity and
their capacity to succeed. Jawaharlal Nehrus
equality of the good life. Indira Gandhis slogan of
famous Tryst with Destiny speech on the eve of
Garibi Hatao in 1971 further fuelled these
independence reflected this buoyant mood. India
expectations as did the process of continuous
has started off with a broad social consensus on
politicization since 1950. The constantly rising
the basic contours of the India that was to be built
aspiration and expections had to be fulfilled as
on the values of nationalism, secularism and
rapidly as possible and without letting too wide a
democracy. Rapid economic development and
gap develop between expectations and fulfillment.
radical social change were other agreed on goals.
At the same time, political stability had to be
These values and goals, and the road to their
ensured for the accomplishment of all the tasks.
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Congress and its nationalist precursors and the
Scheme by pointing out that in its view the
Indian Press, had been demanding elections to the
constituent Assembly, once it came into being,
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councils, elected majorities in them and greater
would be sovereign. It would have the right to
powers to the non-official members of councils for
accept or reject the Cabinet Missions proposal on
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many years before that. Nationalist demands had
specific lines. Though an assurance on those lines
already far exceeded what was granted in 1892.
was not forthcoming from the British, the Congress
National movement by the end of the second decade
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nevertheless decided after a great deal of debate to
of the twentieth century had begun to espouse the
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accept the scheme and try to work it, as there was
doctrine of self-determination or the right of Indians
a feeling that outright rejection would again delay
to frame their own constitution.
the process of transfer of power. The Muslim League
Tilak and Annie Besant had launched a Home continued to oppose the Constituent Assembly at
every stage, before as well as after it was
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Rule agitation. The Congress-Muslim League
scheme for constitutional reforms emerged out of constituted.
the Congress League Pact of 1916. A very
prominent role was played by Motilal Nehru, who THE CONSTITUENT ASSEMBLY
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introduced resolution on February 8, 1924 in the
Central Legislative Assembly which asked the The Constituent Assembly was to have 389
government to summon at an early date, a repre- members. Of these, 296 were to be from British
sentative Round Table Conference to recommend India and 93 from the princely Indian states.
with due regard to the protection of the rights and Initially, however, the Constituent Assembly
interests of important minorities and the scheme of comprised only members from British India.
a constitution for India. This was the first time that Elections of these were held in July-August 1946.
the demand for a constitution and the procedure Of the 210 seats in the general category, congress
for its adoption were spelt out in clear terms. won 199. It also won 3 out of 4 Sikh seats from
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large size did not come in the way of its effectively
The Congress and Jawaharlal Nehru as
performing it duties as a constitution making body
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President of the interim government continued to
is due to the enormous preparatory work as well
make conciliatory gestures to Muslim League, but
as organizational skills and hardwork of its leading
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to no avail. Accordingly, on November 20, 1946,
members.
the decision to convene the first session of the
Constituent Assembly on December 9, 1946 was The work was organized into five stages:
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announced. At Nehrus insistence, the oldest Committees were asked to present reports on basic
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member of the Assembly, Dr. Sachchidanand Sinha, issues; B.N. Rau, the constitutional advisor,
became the provisional president and invitations prepared an initial draft on the basis of the reports
were issued in the name of the secretary of the of these committees and his own research into the
Constituent Assembly. In doing this Nehru was
AC I constitutions of other countries; The drafting
establishing for all to see, the independence of the committee, chaired by Dr. B.R. Ambedkar,
Assembly from British control. On December 9, presented a detailed draft Constitution which was
1946, the Constituent Assembly of India began its published for public discussion and comments; The
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first session. For all practical purposes, the chronicle draft Constitution was discussed and amendments
of Independent India began on that historic day. proposed; and The constitution was adopted.
The real responsibility of deciding the In addition, a critical role was played by
constitutional framework within which the govern- Congress party. It had asked a committee of experts
ment and people of India were to function had to prepare material and proposals for the
been transferred and assumed by the Indian people constitution as early as July 4, 1946. The committee
with the convening of the Constituent Assembly. was chaired by Nehru and had Asaf Ali, K.T. Shah,
The first session was attended by 207 members. D.R. Gadgil, K.M. Munshi, Humayun Kabir, R.
The Muslim League, having failed to prevent the Shanthanam and N. Gopalaswamy Ayyangar as
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Besides these Congress leaders, a very important
form of democracy, and suggested that this had to
member of the Assembly was the lawyer and
be decided through deliberations. And he stressed
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economist, B.R. Ambedkar. During the period of
that the ideals and provisions of the constitution
British rule, Ambedkar had been a political
introduced in India could not be just derived from
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opponent of the Congress; but, on the advice of
elsewhere. We are not going just to copy, he
Mahatma Gandhi, he was asked at Independence
said. The system of government established in India,
to join the Union Cabinet as law minister.
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he declared, had to fit in with the temper of our
Ambedkar himself had the responsibility of guiding
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people and be acceptable to them. It was necessary
the Draft Constitution through the Assembly. In
to learn from the people of the West, from their
this capacity, he served as Chairman of the Drafting
achievements and failures, but the Western nations
Committee of the Constitution. Serving with him
too had to learn from experiments elsewhere, they
were two other lawyers, K.M. Munshi from Gujarat
too had to change their own notions of democracy.
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The objective of the Indian Constitution would be
and Alladi Krishnaswamy Aiyyar from Madras,
both of whom gave crucial inputs in the drafting
to fuse the liberal ideas of democracy with the
of the Constitution. These six members were given
socialist idea of economic justice, and re-adapt and
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vital assistance by two civil servants. One was B.N.
rework all these ideas within the Indian context.
Rau, Constitutional Advisor to the Government of
Nehrus plea was for creative thinking about what
India, who prepared a series of background papers
was appropriate for India.
based on a close study of the political systems
The Constituent Assembly had 300 members. obtaining in other countries. The other was the
Of these, six members played particularly important Chief Draughtsman, S.N. Mukherjee, who had the
roles.Three were representatives of the Congress, ability to put complex proposals in clear legal
namely, Jawaharlal Nehru, Vallabh Bhai Patel and language.
Rajendra Prasad. It was Nehru who moved the
This took three years in all, with the printed
crucial Objectives Resolution which spelt out the
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and freedom of press and speech. Troubled,
the constitution was inaugurated. That date, 26
however, by the persisting discrimination against
January, known as Republic Day, with a massive
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untouch-ables and other disadvantaged groups,
parade in New Delhi, has remained a major focus
the Congress Party took steps to insure that these
for Indias celebration of its nationhood. Rejecting
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groups had a voice in the new constitutional order.
the imperial vice-regal style of government
One was the appointment of the distinguished
associated with the Raj, the new India nevertheless
untouchable leader Dr. B.R. Ambedkar to chair
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sought inspiration in domestic British political
the drafting committee for the constitution.
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practice. The constitution put in place a Westminster
style of government, with a parliament comprising Since their tense stand-off over the Communal
two houses, and a prime minister selected by the Award in 1932, Ambedkar, a graduate of Columbia
majority party in the lower house, called the Lok University in New York, had never been reconciled
Sabha or House of the People. Nehru took up the
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position of prime minister, while the president,
installed in the old vice-regal palace, acted, like the
with Gandhi. Calling Hinduism a veritable
chamber of horrors, he had argued that all
Gandhism had done was to smoothen its surface
sovereign in Britain, as titular head of state. The and give it the appearance of decency and
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old colonial separate electorates, with their divisive respectability. Before his death in 1956, Ambedkar
tendencies, were in similar fashion abolished in converted to Buddhism. The new constitution itself
favour of single member constituencies, modelled outlawed untouchability, but of greater importance
on those in Britain itself, open to all. over the long term was the reservation of seats in
the legislatures for the former untouchables, and
Elements of the old colonial style of governance
with them the depressed forest tribes. These groups
nevertheless persisted under the new order. Some
were listed on a special schedule in the constitution,
200 articles of the Government of India Act of 1935,
and so became known as Scheduled Castes and
for instance, were incorporated into the new
Tribes. The members of these castes stood for
constitution. The federal structure, in which power
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sought to impose a wall between church and state, 'fantastic' and as 'an act of faith.' India's electoral
Indian secularism sought to engage with, and so system was developed according to the directives
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sustain, all of Indias various religions. This form of of the Constitution. The Constitution made a
secularism, with its communally based schools and provision for an Election Commission. It was to be
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codes of law, was hard to put into practice. headed by a Chief Election Commissioner, to
Furthermore, the policy encouraged a persisting conduct elections. It was to be independent of the
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allegiance to community at odds with the indivi- executive or the parliament or the party in power.
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dualism of a democratic polity. The constitution
Organization of the elections was a wondrous
further enshrined among its directive principles,
task. There was a house-to-house survey to register
not only the fundamental right of private property,
the voters. With over 70 per cent of the voters being
but a commitment to economic justice, defined as
illiterate, the candidates were to be identified by
distributing the material resources of the country
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in such a way as to promote the common good
symbols, assigned to each major party and
independent candidates, painted on the ballot-boxes
and an equitable sharing of wealth.
(this was later changed to symbols on the ballot
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The Constitution of India came into force on 26 papers). The voters were to place the ballot papers
January, 1950. Since then, the day is celebrated as in the box assigned to a particular candidate, and
Republic Day. However, before 1950, 26 January ballot was secret. Over 224,000 polling booths, one
was called Independence Day. Since 26 January, for almost every 1000 voters, were constructed and
1930, it was the day on which thousands of people, equipped with over 21/2 million steel ballot-boxes,
in villages, in mohallas, in towns, in small and big one box for every candidate. Nearly 620,000,000
groups would take the independence pledge, ballot papers were printed. About a million officials
committing themselves to the complete indepen- supervised the conduct of the polls. Of the many
dence of India from British rule. It was only fitting candidates, whoever got the plurality, or the largest
that the new republic should come into being on number of votes would be elected. It was not
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that day, marking from its very inception the necessary for the winning candidate to have a
continuity between the struggle for independence majority.
and the adoption of the Constitution that made
In all, candidates of over fourteen national and
India a Republic.
sixty-three regional or local parties and a large
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Democracy took a giant step forward with the number of independents contested 489 seats for
first general election held in 1951-52 over a four- the Lok Sabha and 3,283 seats for the state
month period. These elections were the biggest assemblies. Of these, 98 seats for the former and
experiment in democracy anywhere in the world. 669 for the latter were reserved for the Scheduled
The elections were held based on universal adult Castes and the Scheduled Tribes. Nearly 17,500
franchise, with all those twenty-one years of age candidates in all stood for the seats to the Lok
or older having the right to vote. There were over Sabha and the state legislatures. The elections were
173 million voters, most of them poor, illiterate, spread out over nearly four months from 25
and rural, and having had no experience of October, 1951 to 21 February, 1952.
elections. The big question at the time was how
Suitable conditions were created for the free
would the people respond to this opportunity.
participation of the opposition parties in the
Many were skeptical about such an electorate elections, including Jan Sangh and CPI. The
being able to exercise its right to vote in a politically Opposition was, however, quite fragmented.
Chronicle IAS Academy [15]
THE NEHRU ERA CHRONICLE
(1947-1964) IAS ACADEMY
A CIVIL SERVICES CHRONICLE INITIATIVE
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Jawaharlal Nehru was the first Prime Minister new Lok Sabha the party won 364 of the 489 seats.
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of India. His Prime-Ministership was marked by This electoral victory, capitalizing as it did upon
social and economic reforms of the Indian state. A the appeal of the Congress as the party that had
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number of foreign policy landmarks like the brought independence to India, and wrapping itself
founding of the Non-Aligned Movement also in the saintly legacy of the martyred Mahatma
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marked the tenure of Jawaharlal Nehru as Prime Gandhi, was hardly surprising. Support for the
Minister. Congress was, however, by no means universal.
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Indeed, of the votes cast, the Congress secured only
Jawaharlal Nehru became Prime Minister on
some 45 per cent. The remainder was split amongst
the 15th of August, 1947. His ascension was
an array of opposition parties, rightist, leftist, and
plagued by controversy and a bitter power struggle
regional, pushed to the margins by Congresss
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within the Congress Party. The internal struggle of
the party was symptomatic of the larger struggle
within the Indian Republic itself. The initial period
domination of the political centre. This disjuncture
between the Congress Partys limited popular
appeal, and its domination of the legislature, was
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of Jawaharlal Nehru as Prime Minister was marked
to be a feature of Indian politics for decades to
by communal violence.
come.
Jawaharlal Nehru was forced to concede the
The first two decades of Indias independence
creation of Pakistan as per the wishes of the Muslim
can aptly be characterized as the age of Nehru.
League leader the leadership of Muhammad Ali
Several elements together shaped the political life
Jinnah. Communal violence enveloped the entire
of the country through the 1950s and into the
country during this period. Maximum bloodshed
1960s. These include a politics of brokerage, a
was witnessed in the national capital Delhi. The
commitment to economic development, and a
Indian states of Punjab and West Bengal also
struggle to contain fissiparous linguistic regionalism.
witnessed fierce bloodshed.
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The Committee is popularly known as JVP
the nationalisation of heavy industries such as steel,
Committee after the name of its three members
aviation, shipping, electricity and mining. An
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Jawaharlal Nehru, Vallabh Bhai Patel, and Pattabhi
extensive public works and industrialization
Sitarammaiah. The committee rejected language as
campaign resulted in the construction of major
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the basis of reorganization of states. It suggested
dams, irrigation canals, roads, thermal and
that the security, unity and economic prosperity of
hydroelectric power stations.
the nation as the criteria of reorganization.
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The Congress Working Committee accepted its
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STATES REORGANIZATION recommendation in 1949.
Demand of states on linguistic basis was Potti Sreeramulu's fast-unto-death, and
developed even before independence of India under consequent death for the demand of an Andhra
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British rule. Though that time Indian admini-
strative regions were identified as different
State in 1953 sparked a major re-shaping of the
Indian Union. In December 1953, Prime Minister
provinces. Odisha was the first Indian state formed Jawaharlal Nehru appointed the States Reorgani-
on linguistic basis in the year 1936 due to the efforts zation to reorganize the Indian states. This was
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of Madhusudan Das and became Orissa Province. headed by the retired chief Justice of supreme court
In Odisha, linguistic movement started in the year Fazal Ali and the commission itself was also known
1895 and intensified later years with the demand as the Fazal Ali Commission. The other two
of separate province from Bihar and Orissa members of the commission were Mr. Hridaynath
Province. and Mr. K.M. Panikkar. The efforts of this
commission were overseen by Govind Ballabh Pant,
The reorganization of the states based on
who served as Home Minister from December 1954.
language, a major aspect of national consolidation
The commission created a report on September 30,
and integration, came to the fore almost immediately
1955 recommending the reorganization of India's
after independence. The boundaries of provinces
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a state will solve neither the language nor integrated national economic programs and were
the communal problem. implemented immediately after independence under
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Finally, a bill making changes in the constitution socialist influence of first Prime Minister Jawaharlal
and reorganizing states was passed and was Nehru. The Planning Commission was set up in
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implemented from November 1, 1956. The States March 1950. The main objective of the Government
Reorganization Act was enacted on 31 August, was to promote a rapid rise in the standard of
living of the people by efficient exploitation of the
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1956. Before it came into effect on 1 November, an
important amendment to the Constitution was also resources of the country increasing production and
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enacted; this amendment (the Seventh) was timed offering opportunities to all for employment in the
to come into force on the same day. service of the community. The Planning Commi-
ssion was charged with the responsibility of making
Under the Seventh Amendment, the existing
AC I assessment of all resources of the country,
distinction among Part A, Part B, Part C, and Part augmenting deficient resources, formulating plans
D states was abolished. The distinction between for the most effective and balanced utilization of
Part A and Part B states was removed, becoming resources and determining priorities. The first
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known simply as "states". A new type of entity, Indian Prime Minister, Jawaharlal Nehru presented
the union territory, replaced the classification as a the first five-year plan to the Parliament of India
Part C or Part D state. It provided for fourteen on December 8, 1951. This plan was based on the
states and six centrally administered territories. The Harrod-Domar model.
Telengana area of Hyderabad state was transferred
to Andhra; merging the Malabar district of the old The First Five-Year Plan was one of the most
Madras Presidency with Travancore-Cochin important because it had a great role in the
created Kerala. Certain Kannada-speaking areas launching of Indian development after the
of the states of Bombay, Madras, Hyderabad and Independence. Thus, it strongly supported
Coorg were added to the Mysore state. Merging agriculture production and it also launched the
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the states of Kutch and Saurashtra and the Marathi- industrialization of the country (but less than the
speaking areas of Hyderabad with it enlarged Second Plan, which focused on heavy industries).
Bombay state. But two of the most sensitive area, It built a particular system of mixed economy, with
Bombay and Punjab, were not reorganized on a great role for the public sector (with an
linguistic basis. The demands for separate tribal emerging welfare state), as well as a growing
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states, including Jharkhand and Nagaland, were private sector (represented by some personalities
also bypassed. as those who published the Bombay Plan).
The total planned budget of Rs. 2069 crore was
ECONOMIC POLICIES allocated to seven broad areas: irrigation and
energy (27.2%), agriculture and community deve-
Nehru implemented policies based on import lopment (17.4%), transport and communications
substitution industrialization and advocated (24%), industry (8.4%), social services (16.64%),
a mixed economy where the government cont- land rehabilitation (4.1%), and for other sectors
rolled public sector would co-exist with the private and services (2.5%). The most important feature of
sector. He believed that the establishment of basic this phase was active role of state in all economic
and heavy industry was fundamental to the sectors. Such a role was justified at that time
development and modernization of the Indian because immediately after independence, India was
economy. The government therefore directed facing basic problemsdeficiency of capital and
investment primarily into key public sector low capacity to save.
industries steel, iron, coal, and power promoting
their development with subsidies and protectionist The target growth rate was 2.1% annual gross
policies. The policy of non-alignment during domestic product (GDP) growth; the achieved
the Cold War meant that Nehru received financial growth rate was 3.6% the net domestic product
[18] Chronicle IAS Academy
went up by 15%. The monsoon was good and there Industry grew 7.0 per cent annually between 1950
were relatively high crop yields, boosting exchange and 1965 almost trebling industrial output and
reserves and the per capita income, which increa- making India the world's seventh largest industrial
sed by 8%. National income increased more than country. Nehru's critics, however, contended that
the per capita income due to rapid population India's import substitution industrialization, which
growth. Many irrigation projects were initiated was continued long after the Nehru era, weakened
during this period, including the Bhakra Dam and the international competitiveness of its manufac-
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Hirakud Dam. The World Health Organization turing industries. GDP and GNP grew 3.9 and 4.0
(WHO), with the Indian government, addressed per cent annually between 195051 and 196465. It
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children's health and reduced infant mortality, was a radical break from the British colonial period.
indirectly contributing to population growth. But, in comparison to other industrial powers in
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Europe and East Asia, the growth rates were
At the end of the plan period in 1956,
considered anaemic at best. India lagged behind
five Indian Institutes of Technology (IITs) were
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the miracle economies (Japan, West Germany,
started as major technical institutions. The
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France, and Italy). State planning, controls, and
University Grant Commission (UGC) was set up to
regulations were argued to have impaired economic
take care of funding and take measures to
growth. While India's economy grew faster than
strengthen the higher education in the country.
both the United Kingdom and the United States
Contracts were signed to start five steel plants,
low initial income and rapid population increase
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which came into existence in the middle of the
Second Five-Year Plan. The plan was quasi
meant that growth was inadequate for any sort of
catch-up with rich income nations.
successful for the government.
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The Second Plan, particularly in the develop- AGRICULTURE POLICIES
ment of the public sector. The plan followed
the Mahalanobis model, an economic development Under Nehru's leadership, the government
model developed by the Indian statistician Prasanta attempted to develop India quickly by embarking
Chandra Mahalanobis in 1953. The plan attempted on agrarian reform and rapid industrialization. A
to determine the optimal allocation of investment successful land reform was introduced that
between productive sectors in order to maximise abolished giant landholdings, but efforts to
long-run economic growth. It used the prevalent redistribute land by placing limits on landownership
state of art techniques of operations research and failed. Attempts to introduce large-scale cooperative
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optimization as well as the novel applications of farming were frustrated by landowning rural elites,
statistical models developed at the Indian Statistical who formed the core of the powerful right-wing of
Institute. The plan assumed a closed economy in the Congress and had considerable political support
which the main trading activity would be centred in opposing the efforts of Nehru. Agricultural
on importing capital goods. production expanded until the early 1960s, as
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his five-year plans to guarantee free and
Nehru led the faction of the Congress party
compulsory primary education to all of India's
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which promoted Hindi as the ligua-franca of the
children. For this purpose, Nehru oversaw the
Indian nation. After an exhaustive and divisive
creation of mass village enrollment programmes and
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debate with the non-Hindi speakers, Hindi was
the construction of thousands of schools. Nehru
adopted as the official language of India in 1950
also launched initiatives such as the provision of
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with English continuing as an associate official
free milk and meals to children to fight malnutrition.
language for a period of fifteen years, after which
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Adult education centres, vocational and technical
Hindi would become the sole official language.
schools were also organized for adults, especially
Efforts by the Indian Government to make Hindi
in the rural areas.
the sole official language after 1965 were not
Under Nehru, the Indian Parliament enacted acceptable to many non-Hindi Indian states, who
AC I
many changes to Hindu law to criminalise caste
discrimination and increase the legal rights and
wanted the continued use of English. The Dravida
Munnetra Kazhagam (DMK), a descendant of
social freedoms of women. A system of reservations Dravidar Kazhagam, led the opposition to Hindi.
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in government services and educational institutions To allay their fears, Nehru enacted the Official
was created to eradicate the social inequalities and Languages Act in 1963 to ensure the continuing
disadvantages faced by peoples of the scheduled use of English beyond 1965. The text of the Act did
castes and scheduled tribes. Nehru also championed not satisfy the DMK and increased their scepticism
secularism and religious harmony, increasing the that his assurances might not be honoured by future
representation of minorities in government. administrations. The issue was resolved during the
premiership of Lal Bahadur Shastri, who assured
Most notably, Nehru allowed Muslims to keep
that English would continue to be used as the
their personal law in matters relating to marriage
official language as long the non-Hindi speaking
and inheritance. Also in the small state of Goa, a
states wanted. The Official Languages Act was
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China launches a massive multi-pronged attack
for Communist China in the UN Security Council,
all along the border from Ladakh in the west to
did not support the US position in the Korean War,
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Arunachal Pradesh in the east. A massive Chinese
and tried his best to bring about a settlement in
attack on the eastern front. Tawang and Walong
Korea.
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in the eastern sector over run, Rezang La and the
In 1950, when China occupied Tibet, India was Chushul airport in the west shelled. Chinese troops
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unhappy that it had not been taken into confidence, capture Bomdi La in the NEFA region. In 1962,
but did not question China's rights over Tibet since China declares a unilateral ceasefire along the entire
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at many times in Chinese history Tibet had been border and announces withdrawal of its troops to
subjugated by China. In 1954, India and China 20 km behind the LAC.
signed a treaty in which India recognized China's
rights over Tibet and the two countries agreed to After the war, China retained de facto control
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be governed in their mutual relations by the
principles of Panchsheel. Differences over border
of the Aksai Chin India stabilized along the Line of
Actual Control. The war precipitated as well a
delineation were discussed at this time but China massive diversion of funds from development to
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maintained that it had not yet studied the old the military, which, neglected, had remained
Kuomintang maps and these could be sorted out unchanged from the colonial era. The aftermath of
later. the war saw sweeping changes in the Indian
military to prepare it for similar conflicts in the
In 1959, however, there was a big revolt in future, and placed pressure on Indian Prime
Tibet and the Dalai Lama fled Tibet along with Minister Jawaharlal Nehru, who was seen as
thousands of refugees. He was given asylum in responsible for failing to anticipate the Chinese
India but not allowed to set up a government-in- attack on India. Indians reacted with a surge in
exile and dissuaded from carrying on political patriotism and memorials were erected for many
activities. Soon after, in October 1959, Chinese of the Indian troops who died in the war. Arguably,
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opened fire on an Indian patrol near the Kongka the main lesson India learned from the war was
Pass in Ladakh. China refused to accept the the need to strengthen its own defenses and a shift
McMahon Line and Beijing laid claims to 50,000 from Nehru's foreign policy with China based on
square miles of territory in Sikkim and Bhutan. his stated concept of "brotherhood". Because of
Chinese troops fire on an Indian patrol in the Aksai India's inability to anticipate Chinese aggre-
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Chin area killing nine soldiers and capturing ten. ssion, Prime Minister Nehru faced harsh criticism
Letters were exchanged between the two from government officials, for having promoted
governments, but a common ground did not pacifist relations with China. The war also put an
emerge. Then, Chou En-lai was invited for talks to end to Nehru's earlier hopes that India and China
Delhi in April 1960, but not much headway could would form a strong Asian Axis to counteract the
be made and it was decided to let officials sort out increasing influence of the Cold War bloc super-
the details first. powers.
In June 1960, Chinese troops violate the Indian
border near Shipki village in the northeast and INDIAS FOREIGN POLICY
China further occupies 12,000 sq. miles in the
western sector. In October 1961, Chinese start Indias post-independence policymakers were
aggressive border patrolling and establishes new acutely sensitive to the significance of the colonial
military formations which start moving into Indian legacy. Accordingly, they explicitly sought to forge
territory. India adopts the Forward Policy to stem a pathway that would keep India outside the ambit
the advancing Chinese frontier line by establishing of the Cold War. Such a strategy was possible
a few border outposts. because anti-imperialist sentiments were wide-
spread within the Indian polity across the political
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of the United States. In part, his skepticism was International Control Commission in Vietnam along
the consequence of his highly Anglicized personal with Canada and Poland, it was a key member of
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and professional background. In effect, he had come the Neutral Nations Repatriation Commission in
to share the British upper class disdain for the Korea and it also made a significant troop
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United States. His views toward the Soviet Union contribution in the United Nations Peacekeeping
were more ambivalent. He was also cognizant of forces in the Belgian Congo. Also, India proved to
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the horrors of Stalins collectivist enterprise though be a tireless campaigner in the effort to bring about
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admiring of the achievements of the forced-draught the end of decolonization. To that end, Indias
industrialization program. His partiality toward the diplomacy was carefully geared to the discussion
USSR also stemmed from his own social democratic of the issue at various international forum and
predilections.
AC I especially in the Non-Aligned Movement (NAM).
At least two factors can be adduced to explain In the region, it referred the Kashmir dispute
Nehrus adoption of non-alignment as the lodestar with Pakistan to the United Nations for possible
of Indias foreign policy. First, he was acutely resolution. To the dismay of its policymakers, the
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concerned about the opportunity costs of defense issue became quickly embroiled in the politics of
spending. Any involvement with the two emerging the Cold War. As a consequence of the largely
blocs, he feared, would draw India into the titanic partisan discussions at the United Nations, Indias
struggle and divert critical resources from economic political leadership became increasingly
development. Second, he was intent on maintaining disillusioned about the resolution of its bilateral
Indias hard-won independence. Moving into the territorial disputes through the mechanism of the
ambit of either superpower could compromise such United Nations. Not surprisingly, after extensive
freedom of maneuver. diplomatic discussion with the intransigent Salazar
regime in Portugal produced a deadlock and Prime
THE PATHWAY TO 1962 Minister Nehru faced increasing criticism from a
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had initially claimed. These territories and other ways of thinking. Throughout his 17 years in office,
still remain the subject of tortured and glacial he held up democratic socialism as the guiding star.
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border negotiations. With the help of the overwhelming majority that
the Congress Party maintained in Parliament during
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ASSESSMENT his term of office, he advanced toward that goal.
The four pillars of his domestic policies were
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While assertive in his Indianness, Nehru never democracy, socialism, unity, and secularism. He
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exuded the Hindu aura and atmosphere clinging succeeded to a large extent in maintaining the edifice
to Gandhis personality. Because of his modern supported by these four pillars during his lifetime.
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After the death of Prime Minister Jawaharlal joint declaration under Russian mediation. Under
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Nehru in 1964 Gulzarilal Nanda became interim the treaty India agreed to return to Pakistan all the
Prime Minister for thirteen days. His term was territories occupied by it during the war. The joint
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uneventful, yet it was sensitive of period because declaration was signed on January 10, 1966 and
of the potential danger to the country following Lal Bahadur Shastri died of heart attack on the
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Nehru's death soon after a war with China in 1962. same night.
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Lal Bahadur Shastri (born 1904) succeeded
Jawaharlal Nehru as Prime Minister of India in
ECONOMIC POLICIES
1964. Though eclipsed by such stalwarts of the
Shastri continued Nehru's socialist economic
Congress party as Kamaraj (the Kingmaker) and
policies with central planning. He promoted the
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Morarji Desai, Finance Minister in Nehru's
government, Shastri emerged as the consensus
candidate in the midst of party warfare. Accepting
White Revolution a national campaign to increase
the production and supply of milk by supporting
the Amul milk co-operative of Anand, Gujarat and
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the limited character of his political mandate, Shastri
creating the National Dairy Development Board.
did not make any major changes in Nehru's
Cabinet, except for persuading Indira Gandhi, Shri Lal Bahadur Shastri, Prime Minister of
Nehrus daughter, to join it as Minister of India, visited Anand on 31 October, 1964 for
Information and Broadcasting. Under him, the inauguration of the Cattle Feed Factory of Amul at
cabinet ministers functioned more autonomously. Kanjari. As he was keenly interested in knowing
He also did not interfere in party affairs or with the success of this co-operative and discusses his
the working of the state governments. On the wish to Mr. Verghese Kurien, then the General
whole, he kept a low political profile except towards Manager of Kaira District Co-operative Milk
the end of his administration. Producers Union Ltd. (Amul) to replicate this
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problem was, however, finally resolved in early While speaking on the chronic food shortages
1966. The demands for Punjabi Suba (state) and across the country, Shastri urged people to
Goa's merger with Maharashtra were also allowed voluntarily give up one meal so that the saved food
to simmer. could be distributed to the affected populace. He
himself motivated the countrymen to maximize the
During his tenure the country was facing huge
cultivation of food grains by ploughing the lawn in
challenges. There was food shortage in the country
his official residence in New Delhi.
and on the security front Pakistan was creating
problems. In 1965, Pakistan tried to take advantage Shastri hated the idea of going around with a
of India's vulnerability and attacked India. Mild- begging bowl. So he hit upon a novel idea. He
mannered Lal Bahadur Shastri rose to the occasion went on air to appeal to his countrymen to skip a
and led the country ably. To enthuse soldiers and meal a week. The response was overwhelming.
farmers he coined the slogan of "Jai Jawan, Jai Even restaurants and eateries downed the shutters
Kishan". In January 1966, to broke peace between on Monday evenings. Many parts of the country
India and Pakistan, Russia mediated a meeting observed the Shastri Vrat. First he implemented
between Lal Bahadur Shastri and Ayub Khan in the system in his own family before appealing to
Tashkent, Russia. India and Pakistan signed the the countrymen.
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production, Shastri also promoted the Green the status of the state of Jammu and Kashmir. The
Revolution. Though he was a socialist, Shastri stated clash did not resolve this dispute, but it did engage
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that India cannot have a regimented type of the United States and the Soviet Union in ways
economy. that would have important implications for
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The Food Corporation of India was setup under subsequent superpower involvement in the region.
the Food Corporation's Act 1964. Also the National The state of Jammu and Kashmir, which had a
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Agricultural Products Board Act was passed during predominantly Muslim population but a Hindu
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his tenure. leader, shared borders with both India and West
Pakistan. The argument over which nation would
THIRD FIVE-YEAR PLAN incorporate the state led to the first India-Pakistan
War in 194748 and ended with UN mediation.
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The Third Five-year Plan stressed agriculture
and improvement in the production of wheat, but
Jammu and Kashmir, also known as Indian
Kashmir or just Kashmir, joined the Republic
the brief Sino-Indian War of 1962 exposed of India, but the Pakistani Government continued
weaknesses in the economy and shifted the focus to believe that the majority Muslim state rightfully
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towards the defence industry and the Indian Army. belonged to Pakistan.
In 19651966, India fought a War with Pakistan.
Conflict resumed again in early 1965, when
There was also a severe drought in 1965. The war
Pakistani and Indian forces clashed over disputed
led to inflation and the priority was shifted to price
territory along the border between the two nations.
stabilisation. The construction of dams continued.
Hostilities intensified that August when the
Many cement and fertilizer plants were also Pakistani army attempted to take Kashmir by force.
built. Punjab began producing an abundance The attempt to seize the state was unsuccessful,
of wheat. and the second India-Pakistan War reached a
stalemate. This time, the international politics of
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Many primary schools were started in rural the Cold War affected the nature of the conflict.
areas. In an effort to bring democracy to the grass-
root level, Panchayat elections were started and The United States had a history of ambivalent
the states were given more development responsi- relations with India. During the 1950s, U.S. officials
bilities. regarded Indian leadership with some caution due
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renamed the Central Treaty Organization, or People's Republic and Pakistan, Shastri's government
(CENTO) in 1955. Pakistans interest in these pacts decided to expand the defence budget of India's
stemmed from its desire to develop its military and
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armed forces.
defensive capabilities, which were substantially
In 1964, Shastri signed an accord with the Sri
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weaker than those of India. Both the United States
Lankan Prime Minister Sirimavo Bandaranaike
and the United Kingdom supplied arms to Pakistan
regarding the status of Indian Tamils in the then
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in these years. Ceylon. This agreement is also known as the Srimavo-
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After Pakistani troops invaded Kashmir, India Shastri Pact or the Bandaranaike-Shastri pact.
moved quickly to internationalize the regional Under the terms of this agreement, 600,000 Indian
dispute. It asked the United Nations to reprise its Tamils were to be repatriated, while 375,000 were to
role in the First India-Pakistan War and end the
AC I be granted Sri Lankan citizenship. This settlement
current conflict. The Security Council passed was to be done by 31 October, 1981. However, after
Resolution 211 on September 20 calling for an end Shastri's death, by 1981, India had taken only 300,000
to the fighting and negotiations on the settlement Tamils as repatriates, while Sri Lanka had granted
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of the Kashmir problem, and the United States and citizenship to only 185,000 citizens (plus another
the United Kingdom supported the UN decision 62,000 born after 1964). Later, India declined to
by cutting off arms supplies to both belligerents. consider any further applications for citizenship,
This ban affected both belligerents, but Pakistan stating that the 1964 agreement had lapsed.
felt the effects more keenly since it had a much In December 1965, Lal Bahadur Shastri made an
weaker military in comparison to India. The UN official visit with his Family to Rangoon, Burma and
resolution and the halting of arms sales had an re-established a cordial relation with the countrys
immediate impact. India accepted the ceasefire on Military government of General Ne Win. Indias
September 21 and Pakistan on September 22. relationship with Burma stained after the 1962
Military coup followed by Lakhs of Indian Family
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The ceasefire alone did not resolve the status of most of them are Tamils and Bengalis repatriate to
Kashmir, and both sides accepted the Soviet Union India from 1964.
as a third-party mediator. Negotiations in Tashkent
The Central Government in New Delhi monitored
concluded in January 1966, with both sides giving
the overall process of repatriation and arranged for
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After the death of Prime Minister Lal Bahadur In 1971, Indira Gandhi and her Congress (R)
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Shastri in 1966 Gulzarilal Nanda once again were returned to power with a massively increased
became interim Prime Minister for thirteen days. majority. The nationalisation of banks was carried
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out, and many other socialist economic and
On Shastris sudden death in January 1966,
industrial policies enacted. India intervened in
Gandhi became leader of the Congress Partyand
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Bangladesh Liberation War-a civil war taking place
thus also prime ministerin a compromise between
in Pakistan's Bengali half, after millions of refugees
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the right and left wings of the party. Her leadership,
had fled the persecution of the Pakistani army. The
however, came under continual challenge from the
clash resulted in the independence of East Pakistan,
right wing of the party, led by a former minister of
which became known as Bangladesh, and Prime
finance, Morarji Desai. Indira Gandhi (November
Minister Indira Gandhi's elevation to immense
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19, 1917, Allahabad, Indiadied October 31,
1984, New Delhi) served as prime minister
popularity. Relations with the United States grew
strained, and India signed a 20-year treaty of
of India for three consecutive terms (196677) and
friendship with the Soviet Union - breaking
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a fourth term from 1980 until she was assassinated
explicitly for the first time from non-alignment. In
in 1984.
1974, India tested its first nuclear weapon in the
In 1967, the Congress Party won a reduced desert of Rajasthan. Meanwhile, in the Indian
majority in the 1967 elections owing to widespread protectorate of Sikkim, a referendum was held that
disenchantment over rising prices of commodities, resulted in a vote to formally join India and depose
unemployment, economic stagnation and a food the Chogyal. On 26 April, 1975, Sikkim formally
crisis. Indira Gandhi had started on a rocky note became India's 22nd state.
after agreeing to a devaluation of the Indian rupee,
In 1974, the Allahabad High Court found Indira
which created much hardship for Indian businesses
Gandhi guilty of misusing government machinery
and consumers, and the import of wheat from the
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constrain Gandhi's authority. But following the strikes across India that paralysed its economy and
counsel of her political advisor, P.N. Haksar, Gandhi administration, Narayan even called for the Army
resuscitated her popular appeal by a major shift to oust Mrs. Gandhi. In 1975, Mrs. Gandhi advised
towards socialist policies. She successfully ended President Fakhruddin Ali Ahmed to declare a state
the privy purse guarantee for former Indian royalty, of emergency under the Constitution, which
and waged a major offensive against party allowed the Central government to assume
hierarchy over the nationalisation of India's banks. sweeping powers to defend law and order in the
Although resisted by Desai and India's business nation. Explaining the breakdown of law and order
community, the policy was popular with the and threat to national security as her primary
masses. When Congress politicians attempted to reasons, Mrs. Gandhi suspended many civil
oust Gandhi by suspending her Congress liberties and postponed elections at national and
membership, Gandhi was empowered with a large state levels. Non-Congress governments in Indian
exodus of Members of Parliament to her own states were dismissed, and nearly 1,000 opposition
Congress (R). The bastion of the Indian freedom political leaders and activists were imprisoned and
struggle, the Indian National Congress had split in programme of compulsory birth control intro-
1969. Gandhi continued to govern with a slim duced. Strikes and public protests were outlawed
majority. in all forms.
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authoritarian conduct. Police officers were accused Prime Minister. All but one of them succeeding in
of arresting and torturing innocent people. Indira's meeting the targeted growth. There is considerable
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son and political advisor, Sanjay Gandhi was debate regarding whether Gandhi was a socialist
accused of committing gross excesses - Sanjay was on principle or out of political expediency. Regard-
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blamed for the Health Ministry carrying out forced less of the debate over her ideology or lack of
vasectomies of men and sterilisation of women as thereof, Gandhi remains a left-wing icon. She has
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a part of the initiative to control population growth, been described as the "arguably the greatest mass
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and for the demolition of slums in Delhi. leader of the last century. Her campaign slogan,
Garibi Hatao (Remove Poverty), has become the
JANATA PARTY iconic motto of the Indian National Congress.
Due to miserable failure of the Third Plan the
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Gandhi's Congress Party called for general
elections in 1977, only to suffer a humiliating
electoral defeat at the hands of the Janata Party,
government was forced to declare "plan holidays"
(from 196667, 196768, and 196869). Three
annual plans were drawn during this intervening
an amalgamation of opposition parties. Morarji
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period. During 196667 there was again the
Desai became the first non-Congress Prime Minister
problem of drought. Equal priority was given to
of India. The Desai administration established
agriculture, its allied activities, and industrial sector.
tribunals to investigate Emergency-era abuses, and
The main reasons for plan holidays were the war,
Indira and Sanjay Gandhi were arrested after a
lack of resources, and increase in inflation.
report from the Shah Commission.
But in 1979, the coalition crumbled and Charan Green Revolution and the Fourth Five Year
Singh formed an interim government. The Janata Plan (1969-1974)
party had become intensely unpopular due to its
internecine warfare, and the fact that it offered no At this time Indira Gandhi was the Prime
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leadership on solving India's serious economic and Minister. Fiscal problems associated with the war
social problems. with Pakistan in 1965, along with a drought-
induced food crisis that spawned famines, had
Indira Gandhi and her Congress party splinter plunged India into the sharpest recession since
group, Congress (Indira) party were swept back independence. To deal with India's food problems,
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into power with a large majority in January 1980. Gandhi expanded the emphasis on production of
But the rise of an insurgency in Punjab would inputs to agriculture that had already been initiated
jeopardize India's security. In Assam, there were by her father, Jawaharlal Nehru. The Green
many incidents of communal violence between Revolution in India subsequently culminated under
native villagers and refugees from Bangladesh, as her government in the 1970s and transformed the
well as settlers from other parts of India. When country from a nation heavily reliant on imported
Indian forces undertaking Operation Blue Star, grains and prone to famine to being largely able to
raided the hideout of self-rule pressing Khalistan feed itself, and become successful in achieving its
militants in the Golden Temple - Sikhs' most holy goal of food security. The Indira Gandhi
shrine - in Amritsar, the inadvertent deaths of government nationalised 14 major Indian banks
civilians and damage to the temple building and the Green Revolution in India advanced
inflamed tensions in the Sikh community across agriculture. In addition, the situation in East
India. The Government used intensive police Pakistan (now Bangladesh) was becoming dire as
operations to crush militant operations, but it the Indo-Pakistan War of 1971 and Bangladesh
resulted in many claims of abuse of civil liberties. Liberation War took funds earmarked for industrial
Northeast India was paralyzed owing to the ULFA's development. India also performed the Smiling
clash with Government forces. Buddha underground nuclear test in 1974. The
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and justice. The plan also focused on self-reliance in of the State Owned Enterprises (SOE), and in
agricultural production and defence. The measures stimulating the private sector through deregulation
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of the emergency regime was able to halt the and liberation of the capital market. The
economic trouble of the early to mid-1970s, which government subsequently launched Operation
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had been marred by harvest failures, fiscal Forward in 1982, the first cautious attempt at
contraction, and the breakdown of the Bretton reform. The Sixth Five-Year Plan was a great
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Woods system of fixed exchanged rate; the resulting success to the Indian economy. The target growth
turbulence in the foreign exchange markets being
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rate was 5.2% and the actual growth rate was
further accentuated by the oil shock of 1973. The 5.4%.
government was even able to exceed the targeted
growth figure with an annual growth rate of DOMESTIC POLICY
5.05.2% over the five-year period of the plan
AC I
(197479). The economy grew at the rate of 9% in
197576 alone, and the Fifth Plan, became the first Nationalisation
plan during which the per capita income of the
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Despite the provisions, control and regulations
economy grew by over 5%. In 1978 the newly
of Reserve Bank of India, most banks in India had
elected Morarji Desai government rejected the plan.
continued to be owned and operated by private
The Electricity Supply Act was amended in 1975,
persons. In 1969, Gandhi moved to nationalise
which enabled the central government to enter into
fourteen major commercial banks. After the
power generation and transmission.
nationalisation of banks, the branches of the public
The Indian national highway system was sector banks in India rose to approximate 800 per
introduced and many roads were widened to cent in deposits, and advances took a huge jump
accommodate the increasing traffic. Tourism also by 11,000 per cent. Nationalisation also resulted in
expanded. It was followed from 1974 to 1979. The a significant growth in the geographical coverage
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target growth rate was 4.4% and the actual growth of banks; the number of bank branches rose from
rate was 5.0%. 8,200 to over 62,000, most of which were opened
in the unbanked, rural areas. The nationalisation
Rolling Plan (1978-80) drive not only helped to increase household savings,
but it also provided considerable investments in
CH
The Janata Party government rejected the Fifth the informal sector, in small and medium-sized
FiveYear Plan and introduced a new Sixth Five- enterprises, and in agriculture, and contributed
Year Plan (19781983). This plan was again significantly to regional development and to the
rejected by the Indian National Congress govern- expansion of Indias industrial and agricultural
ment in 1980 and a new Sixth Plan was made. The base. Having been re-elected in 1971 on a
earlier one was subsequently referred to as a rolling nationalisation platform, Gandhi proceeded to
plan. nationalise the coal, steel, copper, refining, cotton
textiles, and insurance industries. Most of these
Sixth Five-Year Plan (1980-85) nationalisations were made to protect employment
and the interest of the organized labour. The
Although Gandhi continued professing socialist
remaining private sector industries were placed
beliefs, the Sixth FiveYear Plan marked the
under strict regulatory control. In 1973, Indira
beginning of economic liberalization. Populist
Gandhi nationalised oil companies.
programs and policies were replaced by prag-
matism. Price controls were eliminated and ration
Administration
shops were closed. This led to an increase in food
prices and an increase in the cost of living. Family In 1966, Punjab was reorganized on linguistic
planning was also expanded in order to prevent lines. The Hindi-speaking southern half of Punjab
Chronicle IAS Academy [29]
became a separate state, Haryana, while the Pahari policy of bilingualism in India and satisfied the non-
speaking hilly areas in the northeast were joined Hindi speaking Indian states. Gandhi thus put
to Himachal Pradesh. In doing so, the intension was herself forward as a leader with a pan-Indian
to ward off the growing political conflict between vision.
Hindu and Sikh groups in the region. However, a
contentious issue that was considered unresolved National security
by the Akali's was the status of Chandigarh, a
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prosperous city on the Punjab-Haryana border, In the late 1960s and 1970s, Gandhi had the
which was a union territory to be shared as a Indian army crush militant Communist uprisings in
Y
capital by both the states. the Indian state of West Bengal. The communist
insurgency in India was completely suppressed
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Victory over Pakistan in 1971 consolidated during the state of emergency.
Indian power in Kashmir. Gandhi indicated that
she would make no major concessions on Kashmir. Gandhi considered the north-eastern regions
EM
The most prominent of the Kashmiri separatists, important, because of its strategic situation. In 1966,
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Sheikh Abdullah, had to recognize India's control the Mizo uprising took place against the govern-
over Kashmir in light of the new order in South ment of India and overran almost the whole of
Asia. The situation was normalized in the years the Mizoram region. Gandhi ordered the Indian
following the war after Abdullah agreed to an
AC I army to launch massive retaliatory strikes in
accord with Gandhi, by giving up the demand for response. The rebellion was suppressed with
a plebiscite in return for a special autonomous the Indian Air Force even carrying out airstrikes
status for Kashmir. In 1975, the state of Jammu in Aizawl; this remains the only instance of India
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and Kashmir was decleared as a constituent unit carrying out an airstrike in its own civilian
of India. The Kashmir conflict remained largely territory. The defeat of Pakistan in 1971 and the
peaceful under Gandhi's premiership. secession of East Pakistan as pro-India Bangladesh
led to the collapse of the Mizo separatist movement.
In 1972, Meghalaya, Manipur and Tripura were In 1972, after the less extremist Mizo leaders came
granted statehood, while the North-East Frontier to the negotiating table, Gandhi upgraded Mizoram
Agency was declared a union territory and to the status of a union territory. A small-scale
renamed Arunachal Pradesh. The transition to insurgency by some militants continued into the
statehood for these territories was successfully late 1970s but was successfully dealt with by the
overseen by her administration. This was followed government. The Mizo conflict was definitively
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E
had the ability to test its first nuclear weapon In
Indian power contributing to a growing security
1974, India successfully conducted an underground
nexus between Indias two major adversaries.
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nuclear test, unofficially code named as "Smiling
Buddha", near the desert village of Pokhran in At a regional level, Indias misgivings about its
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Rajasthan. security increased in the aftermath of the first
Chinese nuclear test at Lop Nor in 1964. The
FOREIGN POLICY DURING SHASTRI political fallout from these tests was considerable.
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AND INDIRA GANDHI TENURE Some within Indias parliament called for an
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abandonment of non-alignment and even urged
that India acquire an independent nuclear weapons
Modified Structuralism: the post-Nehru Era option. After considerable debate, the ruling
Congress party and the new Prime Minister, Lal
The military defeat in 1962 marked nothing
AC I
short of a watershed in the structure and conduct
Bahadur Shastri, reaffirmed the countrys public
commitment to non-alignment and eschewed any
of Indias foreign and security policies. In the
immediate plans to acquire nuclear weapons.
immediate aftermath of this military debacle, Nehru
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overcame his staunch objections to defense However, in 1966, Prime Minister Indira
spending. In his final days, he oversaw a drastic Gandhi, Shastris successor, decided to seek a
re-appraisal of Indias security policies and nuclear guarantee from the great powers. This
practices. Most importantly, India embarked on a effort, proved to be quite fruitless. In the aftermath
substantial program of military modernization. It of this failure, Prime Minister Gandhi authorized
committed itself to the creation of a million man Indias Subterranean Nuclear Explosions Project
army with ten new mountain divisions equipped (SNEP) which culminated in Indias first nuclear
and trained for high altitude warfare, a 45 squadron test of May 1974. Under Indira Gandhi, Indias
airforce with supersonic aircraft and a modest foreign policy sought to sustain two competing
program of naval expansion. However, even after
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foreign policy. Indias foreign policy behavior, apartheid regime in South Africa, it was an
however, increasingly assumed a more Realist unyielding supporter of the Palestinian cause and
orientation. it opposed the Portuguese presence in Angola and
Mozambique.
Once again, global, regional and personal factors
contributed to the major policy shift. Despite a On the other hand, it also came to accept the
fleeting moment of military cooperation with India importance of defense preparedness and
in the aftermath of the 1962 war, the United States increasingly overcame its reservations about the use
disengaged itself from South Asia after the second of force in international politics. Not surprisingly,
Indo-Pakistani conflict in 1965 as it became when faced with several million refugees from East
increasingly preoccupied with the prosecution of the Pakistan as a consequence of the outbreak of a
Vietnam war. Barring a brief and unhappy interlude civil war, the country quickly forged a careful
in 1966 when the Johnson administration chose to politico-diplomatic strategy to breakup Pakistan.
exert considerable economic pressure on India to Part of this strategy involved the acquisition of a
temper its criticism of the Vietnam war, to reform tacit security guarantee from the Soviet Union to
its agricultural policies and to open up its domestic counter possible Chinese malfeasance. Accordingly,
economy to foreign investment, the United States, despite Indias professed commitment to
for all practical purposes, lost interest in India. non-alignment it signed a twenty-year pact of
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along with an indigenous Bengali rebel movement, renewed strategic relationship with Pakistan almost
the mukti bahini (literally liberation force) immediately after the Soviet invasion. General
Y
militarily prevailed against the demoralized Zia-ul-Haq even rebuffed Indias efforts at
Pakistani forces. reassuring Pakistan in the aftermath of the invasion.
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In the aftermath of the 1971 war, the In its efforts to oust the Soviets from
concomitant break-up of Pakistan and the creation Afghanistan the United States came to rely heavily
EM
of Bangladesh, Indian emerged as the undisputed on Pakistan. General Zia-ul-Haq, the military
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dominant power within the subcontinent. Despite dictator, quite astutely exacted a significant
its new found status, the country was unable to economic and military price for such cooperation.
transcend the region. Several factors account for During his watch, the United States provided two
this failure to emerge as a power of any
AC I packages of foreign assistance the first for five years
consequence in the global order. Most importantly, of $3.2 billion and the second for six years of $4.02
thanks to its pursuit of a dubious strategy of state- billion. In an effort to maintain its military
led industrialization Indias economic growth superiority over Pakistan, India entered into a
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remained anemic. Simultaneously, the countrys tighter military cooperation relationship with the
deep-seated export pessimism led it to shy away Soviet Union. This military relationship, however,
from integrating itself into the global economy. The exacted a significant diplomatic cost. India was
failure to develop ties with the global economy forced to tacitly acquiesce in the Soviet occupation
contributed to a paucity of foreign investment, of Afghanistan. For the remainder of the decade,
important technological lags, a lack of innovation barring some limited efforts on the part of the
and the stifling of entrepreneurship. In turn, these Reagan administration to improve relations with
forces contributed to what the eminent Indian India as part of a strategy to reduce the countrys
economist Raj Krishna mordantly referred to as dependence on the Soviet Union, India remained
the Hindu rate of growth. of little consequence to the great powers.
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on the night of 2526 March, 1971 at about 1:30 am Pakistan. By October, other stickers proclaimed
(as per Radio Pakistan's news on 29 March, 1971) Hang the Traitor in an apparent reference to Sheikh
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and taken to West Pakistan. The next action carried Mujibur Rahman.
out was Operation Searchlight, an attempt to kill
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By November, war seemed inevitable. Through-
the intellectual elite of the east.[31]
out November, thousands of people led by West
On 26 March, 1971, Ziaur Rahman, a major in Pakistani politicians marched in Lahore and across
EM
the Pakistani army, declared the independence of West Pakistan, calling for Pakistan to Crush
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Bangladesh. In April, exiled Awami League leaders India. India responded by starting a massive
formed a government-in exile in Baidyanathtala buildup of Indian forces on the border with East
of Meherpur. The East Pakistan Rifles, a parami- Pakistan. The Indian military waited until
litary force, defected to the rebellion. Bangladesh December, when the drier ground would make for
AC I
Force namely Mukti Bahini consisting of Niyomito
Bahini (Regular Force) and Gono Bahini (Guerilla
easier operations and Himalayan passes would be
closed by snow, preventing any Chinese inter-
Force). vention. On 23 November, Yahya Khan declared a
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state of emergency in all of Pakistan and told his
Indias Involvement people to prepare for war.
shelter in India. The governments of West Bengal, India and the Indian Air Force responded with
Bihar, Assam, Meghalaya and Tripura established initial air strikes that very night. These air strikes
refugee camps along the border. The resulting flood were expanded to massive retaliatory air strikes
of impoverished East Pakistani refugees placed an the next morning and thereafter which followed
intolerable strain on India's already overburdened
CH
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military capitulated in less than a fortnight. On 16 UN Security Council calling for a ceasefire and the
December, the Pakistani forces stationed in withdrawal of armed forces by India and Pakistan.
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East Pakistan surrendered. The Instrument of It was vetoed by the Soviet Union. The following
Surrender of Pakistani forces stationed in East days witnessed a great pressure on the Soviets from
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Pakistan was signed at Ramna Race Course the Nixon-Kissinger duo to get India to withdraw,
in Dhaka at 16.31 IST on 16 December, 1971, but to no avail.
EM
by Lieutenant General Jagjit Singh Aurora, General
Officer Commanding-in-chief of Eastern Command When Pakistan's defeat in the eastern sector
C
of the Indian Army and Lieutenant General seemed certain, Nixon deployed Task Force 74 led
A. A. K. Niazi, Commander of Pakistani forces in by the aircraft carrier USS Enterprise into the Bay
East Pakistan. As Aurora accepted the surrender, of Bengal. The Enterprise and its escort ships arrived
the surrounding crowds on the race course began
AC I on station on 11 December, 1971. On 6 and
shouting anti-Niazi and anti-Pakistan slogans. 13 December, the Soviet Navy dispatched two
groups of cruisers and destroyers and a submarine
India took approximately 90,000 prisoners of armed with nuclear missiles from Vladivostok; they
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war, including Pakistani soldiers and their East trailed US Task Force 74 into the Indian Ocean
Pakistani civilian supporters. With the end of the from 18 December, 1971 until 7 January, 1972. The
war Bangladesh became an independent nation, Soviets also had a nuclear submarine to help ward
the world's fourth most populous Muslim off the threat posed by USS Enterprise taskforce in
state. Mujibur Rahman was released from a West the Indian Ocean.
Pakistani prison, returning to Dhaka on 10 January,
1972 and becoming the first President of China
Bangladesh and later its Prime Minister.
As a long-standing ally of Pakistan, the People's
United States and Soviet Union Republic of China reacted with alarm to the
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position of its rivalsthe United States and China. with India to discourage it. The Chinese did not,
The USSR gave assurances to India that if a however, respond to this encouragement, because
confrontation with the United States or China unlike the 1962 Sino-Indian War when India was
developed, it would take counter-measures. This caught entirely unaware, this time the Indian Army
assurance was enshrined in the Indo-Soviet was prepared and had deployed eight mountain
friendship treaty signed in August 1971. divisions to the Sino-Indian border to guard against
The United States supported Pakistan both such an eventuality. China instead threw its weight
politically and materially. President Richard behind demands for an immediate ceasefire.
Nixon and his Secretary of State Henry Kissinger When Bangladesh applied for membership to
feared Soviet expansion into South and Southeast
the United Nations in 1972, China vetoed their
Asia. Pakistan was a close ally of the People's
application because two United Nations resolutions
Republic of China, with whom Nixon had been
regarding the repatriation of Pakistani prisoners of
negotiating a reapprochment and where he
war and civilians had not yet been implemented.
intended to visit in February 1972. Nixon feared
China was also among the last countries to
that an Indian invasion of West Pakistan would
recognise independent Bangladesh, refusing to do
mean total Soviet domination of the region, and
so until 31 August, 1975.
that it would seriously undermine the global
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accordance with the Geneva Convention, rule Parliament. And when she felt the existing laws
1925. It released more than 90,000 Pakistani PoWs were 'too slow', she got the President to issue
Y
in five months. 'Ordinances' - a law making power in times of
urgency, invoked sparingly - completely bypassing
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The accord also gave back more than 13,000 km
of land that Indian troops had seized in West the Parliament, allowing her to rule by decree. Also,
Pakistan during the war, though India retained a she had little trouble amending the Constitution
EM
few strategic areas. But some in India felt that the that exonerated her from any culpability in her
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treaty had been too lenient to Bhutto, who had election-fraud case, imposing President's Rule in
pleaded for leniency, arguing that the fragile Gujarat and Tamil Nadu, where anti-Indira parties
democracy in Pakistan would crumble if the accord ruled (state legislatures were thereby dissolved and
was perceived as being overly harsh by Pakistanis suspended indefinitely), and jailing thousands of
AC I
and that he would be accused of losing Kashmir in
addition to the loss of East Pakistan.
opponents. The 42nd Amendment, which brought
about extensive changes to the letter and spirit of
the Constitution, is one of the lasting legacies of
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State of Emergency (19751977) the Emergency.
The Government cited threats to national A fallout of the Emergency era was - the
security, as a war with Pakistan had recently been Supreme Court laid down that, although the
concluded. Due to the war and additional Constitution is amenable to amendments (as abused
challenges of drought and the 1973 oil crisis, the by Indira Gandhi), changes that tinker with its basic
economy was in bad shape. The Government structure cannot be made by the Parliament.
claimed that the strikes and protests had paralysed (Kesavananda Bharti case).
the government and hurt the economy of the
country greatly. Her Cabinet and government then Criticism and accusations of the Emergency-era
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the Sikhs, Indira Gandhi's Congress helped bring and started accumulating weapons. After several
the orthodox religious leader Jarnail Singh futile negotiations, Indira Gandhi ordered the
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Bhindranwale to prominence in Punjab politics. Indian army to enter the Golden temple in order to
Later, Bhindranwale's organization Damdami subdue Bhindranwale and his followers. In the
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Taksal became embroiled in violence with another resulting Operation Blue Star, the shrine was
religious sect called the Sant Nirankari Mission, and damaged and many civilians were killed. The State
EM
he was accused of instigating the murder of the of Punjab was closed to international media, its
Congress leader Jagat Narain. After being arrested
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phone and communication lines shut. To this day
in this matter, Bhindranwale disassociated himself the events remain controversial with a disputed
from Congress and joined hands with the Akali number of victims; Sikhs seeing the attack as
Dal. In July 1982, he led the campaign for the unjustified and Bhindranwale being declared the
implemen-tation of the Anandpur Sahib Resolution, greatest Sikh martyr of the 21st century by Akal
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which demanded greater autonomy for the Sikh- Takht (Sikh Political Authority) in 2003.
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CH
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The Congress party chose Rajiv Gandhi, Indira's withdrew the IPKF in 1990, but thousands of Indian
Y
older son as the next Prime Minister. Rajiv had soldiers had died. Rajiv's departure from Socialist
been elected to Parliament only in 1982, and at 40, policies did not sit well with the masses, who did
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was the youngest national political leader and not benefit from the innovations. Unemployment
Prime Minister ever. But his youth and inexperience was a serious problem, and India's burgeoning
EM
was an asset in the eyes of citizens tired of the population added ever-increasing needs for
diminishing resources.
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inefficacy and corruption of career politicians, and
looking for newer policies and a fresh start to Rajiv Gandhi's image as an honest politician
resolve the country's long-standing problems. The was shattered when the Bofors scandal broke,
Parliament was dissolved, and Rajiv led the revealing that senior government officials had taken
Congress party to its largest majority in history
AC I
(over 415 seats out of 545 possible), reaping a
bribes over defence contracts by a Swedish guns
producer.
sympathy vote over his mother's assassination.
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Rajiv Gandhi initiated a series of reforms - ECONOMIC POLICY
the license raj was loosened, and government
restrictions on foreign currency, travel, foreign He increased government support for science
investment and imports decreased considerably. and technology and associated industries, and
This allowed private businesses to use resources reduced import quotas, taxes and tariffs on
and produce commercial goods without govern- technology-based industries, especially computers,
ment bureaucracy interfering, and the influx of airlines, defence and telecommunications. In 1986,
foreign investment increased India's national he announced a National Policy on Education to
reserves. As Prime Minister, Rajiv broke from his modernise and expand higher education programs
mother's precedent to improve relations with the across India. He founded the Jawahar Navodaya
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United States, which increased economic aid and Vidyalaya System in 1986 which is a Central
scientific cooperation. Rajiv's encouragement of government based institution that concentrates on
science and technology resulted in a major the upliftment of the rural section of the society
expansion of the telecommunications industry, providing them free residential education from 6th
India's space programme and gave birth to till 12 grade. His efforts created MTNL in 1986,
CH
the software industry and information technology and his public call offices, better known as PCOs,
sector. helped spread telephones in rural areas. He
introduced measures significantly reducing
In December 1984, gas leaks out at Union the Licence Raj, in post-1990 period, allowing
Carbide pesticides plant in the central Indian city businesses and individuals to purchase capital,
of Bhopal. Thousands were killed immediately, consumer goods and import without bureau-
many more subsequently died or were left disabled. cratic restrictions.
India in 1987 brokered an agreement between The Seventh Five-Year Plan marked the
the Government of Sri Lanka and agreed to deploy comeback of the Congress Party to power. The plan
troops for peacekeeping operation in Sri Lanka's laid stress on improving the productivity level of
ethnic conflict lead by the LTTE. Rajiv sent Indian industries by upgrading of technology.
troops to enforce the agreement and disarm
the Tamil rebels, but the Indian Peace Keeping The main objectives of the Seventh Five-Year
Force, as it was known, became entangled in Plan were to establish growth in areas of increasing
outbreaks of violence - ultimately ending up fighting economic productivity, production of food grains,
the Tamil rebels itself, and becoming a target of and generating employment.
attack from Sri Lankan nationalists. V.P. Singh As an outcome of the Sixth Five-Year Plan, there
Chronicle IAS Academy [37]
had been steady growth in agriculture, controls on
the rate of inflation, and favourable balance of
JANATA DAL
payments which had provided a strong base for
General elections in 1989 gave Rajiv's Congress
the Seventh Five-Year Plan to build on the need for
a plurality, a far cry from the majority which
further economic growth. The Seventh Plan had
propelled him to power.
strived towards socialism and energy production
at large. The thrust areas of the Seventh Five-Year Power came instead to his former finance and
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Plan were: social justice, removal of oppression of Defence minister, V.P. Singh of Janata Dal. Singh
the weak, using modern technology, agricultural had been moved from the Finance ministry to the
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development, anti-poverty programs, full supply of Defence ministry after he unearthed some scandals
food, clothing, and shelter, increasing productivity which made the Congress leadership uncom-
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of small- and large-scale farmers, and making India fortable. Singh then unearthed the Bofors scandal,
an independent economy. and was sacked from the party and office. Becoming
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a popular crusader for reform and clean
Based on a 15-year period of striving towards
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government, Singh led the Janata Dal coalition to
steady growth, the Seventh Plan was focused on
a majority. He was supported by BJP and the leftist
achieving the prerequisites of self-sustaining growth
parties from outside. Becoming Prime Minister,
by the year 2000. The plan expected the labour
Singh made an important visit to the Golden Temple
force to grow by 39 million people and employment
AC I shrine, to heal the wounds of the past. He started
was expected to grow at the rate of 4% per year.
to implement the controversial Mandal comm-
Under the Seventh Five-Year Plan, India strove ission report, to increase the quota in reservation
to bring about a self-sustained economy in the for low caste Hindus. The BJP protested these
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country with valuable contributions from voluntary implementations, and took its support back,
agencies and the general populace. The target following which he resigned. Chandra Shekhar split
growth rate was 5.0% and the actual growth rate to form the Janata Dal (Socialist), supported by
was 6.01%. Rajiv's Congress. This new government also
collapsed in a matter of months, when congress
FOREIGN POLICY withdrew its support.
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announced that the Akalis would participate in cleared over this allegation in 2004.
the elections. He was assassinated by the terrorists
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Opposition parties united under Singh to form
on same day. The Akalis secured an absolute
the Janata Dal coalition. In the 1989 election, the
majority in the state assembly for the first time in
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Congress suffered a major setback. With the support
their history.
of Indian communists and the Bharatiya Janata
There was a resurgence in terrorists activities. Party, Singh and his Janata Dal formed a
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The militant groups regrouped taking advantage government. Rajiv Gandhi became the Leader of
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of policies of the Barnala government where the the Opposition, while remaining Congress
state government was riven with factionalism and president. While some believe that Rajiv and
thus was unable to contain them. Soon, the central Congress leaders influenced the collapse of
government dismissed the Barnala ministry and V.P. Singh's government in October 1990 by
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imposed President's Rule in Punjab in May 1987.
Despite this, terrorism in Punjab went on growing.
promising support to Chandra Shekhar, a high-
ranking leader in the Janata Dal, sufficient internal
contradictions existed, within the ruling coalition,
After 1985 terrorism begun to be openly funded
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especially over the controversial reservation issue,
and supported by Pakistan.
to cause a fall of government. Rajiv's Congress
A hard policy towards terrorism was followed offered outside support briefly to Chandra Shekhar,
from mid-1991 onwards by the Narasimha Rao who became Prime Minister. They withdrew their
government. In February 1992 elections, congress support in 1991, and fresh elections were
came into power led by Beant Singh in Punjab. announced.
The police became increasingly effective in its Sri Lanka policy
operations. By 1993, Punjab had been virtually
freed of terrorism. Last political heavyweight to Then Sri Lankan Prime Minister Ranasinghe
sacrifice his life for peace in Punjab was Beant Singh. Premadasa opposed the Indo-Sri Lanka Peace
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assigned the task of assassinating Beant Singh. He months. In the 1989 elections, both the Sri Lanka
was wearing an explosive belt underneath his Freedom Party and United National Party wanted
uniform, reached Beant Singh when the CM had the IPKF to withdraw, and they got 95 per cent of
just stepped to his car outside assembly and pressed the vote.
the trigger. Jagtar Singh Hawara, a member of the
Babbar Khalsa International (BKI) terrorist group The police action was unpopular in India as
headed by Wadhawa Singh, was the mastermind well, especially in Tamil Nadu, as India was fighting
behind the whole operation. the Tamil separatists. Rajiv Gandhi refused to
withdraw the IPKF, believing that the only way to
Bofors scandal
end the civil war was to politically force Premadasa
Rajiv Gandhi's finance minister, V.P. Singh, and militarily force the LTTE to accept the accord.
uncovered compromising details about government Gandhi had concluded a visit to Sri Lanka; this
and political corruption, to the consternation of was just after the Indian Peace Keeping Force (a
Congress leaders. Transferred to the Defence contingent of India armed forces sent to Sri Lanka
ministry, Singh uncovered what became known as to help with their battle against Tamil insurgents)
the Bofors scandal, involving tens of millions of had been recalled and there was a good deal of
dollars concerned alleged payoffs by the resentment that Indian troops had been deployed
Swedish Bofors arms company through Italian there.
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favour of Muslim divorcee Shah Bano, declaring Government appears to have picked up from history
that her husband should give her alimony. A section is that these passions can often turn disruptive
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of Muslims in India treated it as an encroachment unless adequately addressed. Hence there is a need
in Muslim Personal Law and protested against it. to amend Article 371 to provide a constitutional
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Gandhi agreed to their demands. In 1986, the guarantee to the DGHC rather than continue to
Congress (I) party, which had an absolute majority accept its functioning under a State Act. There is
also a need to formulate an approach paper at the
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in Parliament at the time, passed an act that
nullified the Supreme Court's judgement in the political level seeking to safeguard the interests of
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Shah Bano case. This was viewed in India that it the Gorkhas as a dominant ethnic community with
is against the fundamental rule of the constitution a distinctive social and linguistic identity.
that the law does treat everyone equal and was Janata Dal and Beginning of Coalition Era
seen as a strategy to appease Muslims and garner
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their votes.
Gorkhaland Territorial Administration
General elections in 1989 gave Rajiv's Congress
a plurality, a far cry from the majority which
propelled him to power.
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In 1986, the Gorkha National Liberation Front Power came instead to his former finance and
(GNLF) was organized under the leadership of Defense minister, V.P. Singh of Janata Dal. Singh
Subhash Gheising. It started an agitation in the hill had been moved from the Finance ministry to the
district of Darjeeling in West Bengal around the Defence ministry after he unearthed some scandals
demand for a separate Gorkha state. After which made the Congress leadership uncom-
negotiations between GNLF and the central and fortable. Singh then unearthed the Bofors scandal,
state governments, a tripartite accord was signed and was sacked from the party and office. Becoming
in Calcutta in August 1988, under which the semi- a popular crusader for reform and clean
autonomous Darjeeling Gorkha Hill Council came government, Singh led the Janata Dal coalition to
into being. The Council had wide control over a majority. He was supported by BJP and the leftist
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finance, education, health, agriculture and parties from outside. Becoming Prime Minister,
economic development. Singh made an important visit to the Golden Temple
Lately Bimal Gurangs GJM has emerged as the shrine, to heal the wounds of the past. V.P. Singh
main political force in the area. A tripartite held office for slightly less than a year, from 2
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agreement paving the way for the setting up of the December, 1989 to 10 November, 1990. After state
Gorkhaland Territorial Administration (GTA), an legislative elections in March 1990, Singhs
elected body for the Darjeeling hills, has been governing coalition achieved control of both houses
signed. West Bengal Chief Minister Mamata of Indias parliament. During this time, Janata Dal
Banerjee and GJM president Bimal Gurung and came to power in five Indian states under Om
central government were 3 Parties concerned. The Prakash Chautala (Banarsi Das Gupta, Hukam
new set-up will have 50 members: 45 of them will Singh), Chimanbhai Patel, Biju Patnaik, Laloo
be elected and the rest nominated. Prasad Yadav, and Mulayam Singh Yadav, and the
National Front constituents in three more under
As large numbers of Gorkhas sang and danced M. Karunanidhi, N.T. Rama Rao, and Prafulla
at the site to celebrate the signing of the accord, Kumar Mahanta. The Janata Dal also shared power
there was a complete shutdown in the nearby town in Kerala under E.K. Nayanarand in Rajasthan
of Siliguri and parts of the Dooars and Terai regions under Bhairon Singh Shekhawat (supporting the
on the plains of north Bengal. Mr. Gurung has Bharatiya Janata Party government from outside).
reiterated the demand for the inclusion, under the
GTA, of the Terai and Dooars regions. A committee He started to implement the controversial
set up for the inclusion of areas in the Dooars and Mandal commission report, to increase the quota
the Terai has recommended for meager areal in reservation for low caste Hindus. The BJP
protested these implementations, and took its
[40] Chronicle IAS Academy
support back, following which he resigned. suggested that a fixed quota of all jobs in the public
Chandra Shekhar split to form the Janata Dal sector be reserved for members of the historically
(Socialist), supported by Rajiv's Congress. This new disadvantaged so-called Other Backward Classes.
government also collapsed in a matter of months, This decision led to widespread protests among the
when congress withdrew its support. upper caste youth in urban areas in northern India.
OBC reservation (less creamy layer) was upheld by
ECONOMIC EVENTS the Supreme Court in 2008.
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Annual Plans (1990-1992) RAM TEMPLE ISSUE AND THE
Y
The Eighth Plan could not take off in 1990 due FALL OF THE COALITION
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to the fast changing political situation at the centre
and the years 1990-91 and 1991-92 were treated Meanwhile, the Bharatiya Janata Party was
as Annual Plans. The Eighth Plan was finally moving its own agenda forward. In particular,
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launched in 1992 after the initiation of structural the Ram Janmabhoomi agitation, which served as
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adjustment policies. a rallying cry for several radical Hindu organi-
zations, took on new life. The party president,
FOREIGN POLICY L.K. Advani, with Pramod Mahajan as aide, toured
the northern states on a rath a bus converted to
AC I
V.P. Singh decided to end the Indian army's
unsuccessful operation in Sri Lanka where Rajiv
look like a mythical chariot with the intention of
drumming up support. Before he could complete
Gandhi, his predecessor, had sent it to combat the the tour by reaching the disputed site in Ayodhya,
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Tamil separatist movement. he was arrested on Singh's orders at Samastipur on
the charges of disturbing the peace and fomenting
V.P. Singh faced his first crisis within few days
communal tension. The kar-seva (demolition of the
of taking office: terrorists kidnapped the daughter
mosque and construction of the temple) proposed
of his Home Minister, Mufti Mohammad
by Advani on 30 October, 1990 was prevented by
Sayeed (former Chief Minister of Jammu and
stationing troops at the site. This led to the
Kashmir). His government agreed to the demand
Bharatiya Janata Party's suspension of support to
for releasing militants in exchange; partly to end
the National Front government.
the storm of criticism that followed, he shortly
thereafter appointed Jagmohan Malhotra, a former
THE CHANDRA SHEKHAR
bureaucrat, as Governor of Jammu and Kashmir,
IA R
E
steady, and many analysts attributed the stronger investment in large, long-gestating, capital-intensive
growth of the 1980s to those efforts. The realization projects, such as electric power, irrigation, and
Y
started occurring to country that a situation as usual infrastructure. However, delayed completions, cost
approach might have to be changed, but country overruns, and under-use of capacity were
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needed a shock to do the course correction, which contributing factors. Private savings financed most
came in early 1990s. of India's investment, but by the mid-1980s further
EM
growth in private savings was difficult because they
The rate of growth improved in the 1980s. A were already at quite a high level. As a result,
C
high rate of investment was a major factor in during the late 1980s India relied increasingly on
improved economic growth. Investment went from borrowing from foreign sources.
AC I
S ON
IA R
CH
E
P.V. Narasimha Rao formed what was initially of Congress Party, and led one of the most
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a minority Congress government on 21 June, 1991 important administrations in India's modern history,
but which gradually achieved a majority, and lasted overseeing a major economic transformation and
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a full five-year term. In the elections, Congress several incidents affecting national security. At that
(Indira) won 244 parliamentary seats and put time Dr. Manmohan Singh (former Prime Minister
EM
together a coalition, returning to power under the of India) launched India's free market reforms that
leadership of P.V. Narasimha Rao. This Congress- brought the nearly bankrupt nation back from the
C
led government, which served a full 5-year term, edge. It was the beginning of privatization and
initiated a gradual process of economic liberalisation liberalisation in India.
and reform, which has opened the Indian
Modernization of industries was a major
economy to global trade and investment. India's
AC I
domestic politics also took new shape, as traditional
alignments by caste, creed, and ethnicity gave way
highlight of the Eighth Plan. Under this plan, the
gradual opening of the Indian economy was
undertaken to correct the burgeoning deficit and
to a plethora of small, regionally-based political
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foreign debt. Meanwhile India became a member
parties.
of the World Trade Organization on 1 January,
But India was rocked by communal violence 1995. This plan can be termed the Rao and
between Hindus and Muslims that killed over 10,000 Manmohan model of economic development. The
people, following the Babri Mosque demolition by major objectives included, controlling population
Hindu extremists in the course of the Ram growth, poverty reduction, employment generation,
Janmabhoomi dispute in Ayodhya in 1992. strengthening the infrastructure, institutional
building, tourism management, human resource
Suffice it to say that Narasimha Raos regime,
development, involvement of Panchayati Raj, Nagar
despite its many achievements which are likely to
Palikas, NGOs, decentralisation and people's
be placed in a more favourable light with a longer
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participation.
historical perspective, tended to lose steam in the
last two years, with a slowing down of economic Economic reforms
reforms, surfacing of corruption charges and the
Rao decided that India, which in 1991 was on
hawala scandal which led to charges, later found
the brink of bankruptcy, would benefit from
CH
E
Major reforms in India's capital markets led to
increased military spending, and set the Indian
an influx of foreign portfolio investment. The major
Army on course to fight the emerging threat of
Y
economic policies adopted by Rao include:
terrorism and insurgencies, as well as Pakistan
Abolishing in 1992 the Controller of Capital and China's nuclear potentials. It was during his
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Issues which decided the prices and number term that terrorism in the Indian state of Punjab
of shares that firms could issue. was finally defeated. Also scenarios of aircraft
EM
Introducing the SEBI Act, 1992 and the hijackings, which occurred during Rao's time ended
C
Security Laws (Amendment) which without the government conceding the terrorists'
gave SEBI the legal authority to register and demands. He also directed negotiations to secure
regulate all security market intermediaries. the release of Doraiswamy, an Indian Oil executive,
Opening up in 1992 of India's equity from Kashmiri terrorists who kidnapped him, and
Liviu Radu, a Romanian diplomat posted in
AC Imarkets to investment by foreign
institutional investors and permitting Indian
firms to raise capital on international
New Delhi in October 1991, who was kidnapped
by Sikh terrorists. Rao also handled the Indian
response to the occupation of the Hazratbal holy
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markets by issuing Global Depository
Receipts (GDRs). shrine in Jammu and Kashmir by terrorists in
October 1993. He brought the occupation to an end
Starting in 1994 of the National Stock
without damage to the shrine. Similarly, he dealt
Exchange as a computer-based trading
with the kidnapping of some foreign tourists by a
system which served as an instrument to
terrorist group called Al Faran in Kashmir in 1995
leverage reforms of India's other stock
effectively. Although he could not secure the release
exchanges. The NSE emerged as India's
of the hostages, his policies ensured that the
largest exchange by 1996.
terrorists demands were not conceded to, and that
Reducing tariffs from an average of 85 per the action of the terrorists was condemned
cent to 25 per cent, and rolling back internationally, including Pakistan.
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Rao's crisis management after the 12 March, In 1989, the VHP, keeping in view the
1993 Bombay bombings was highly praised. He impending Lok Sabha elections, organized a
personally visited Bombay after the blasts and after massive movement to start the construction of a
E
seeing evidence of Pakistani involvement in the Ram temple at the site where the Babri mosque
blasts, ordered the intelligence community to invite stood. As a part of that objective, it gave a call for
the collection of bricks, sanctified by water from
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the intelligence agencies of the US, UK and other
West European countries to send their counter- the river Ganges, from all over the country to be
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terrorism experts to Bombay to examine the facts taken to Ayodhya.
for themselves. To popularize the objective, it organized in 1990
EM
Handling of separatist movements an all-India rath yatra headed by its President,
L.K. Advani. The yatra aroused fierce communal
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Rao has successfully decimated the Punjab passions and was followed by communal riots in
separatist movement and neutralised Kashmir large number of places. Thousands of BJP-VHP
separatist movement. It is said that Rao was 'solely volunteers gathered at Ayodhya at the end of
responsible' for the decision to hold elections in October 1990, despite the Uttar Pradesh govern-
AC I
Punjab. Rao's government introduced the Terrorist
and Disruptive Activities (Prevention) Act
ment, headed by Mulayam Singh Yadav, banning
the rally. To disperse the volunteers and to prevent
(TADA), India's first anti-terrorism legislation, and them from harming the mosque, the police opened
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directed the Indian Army to eliminate the fire on them, killing and injuring over a hundred
infiltrators. Despite a heavy and largely successful persons. The BJP-VHP organized a huge rally of
Army campaign, the state descended into a security over 200,000 volunteers at the site of the mosque
nightmare. Tourism and commerce were largely on 6 December, 1992, with the major leaders of
disrupted. the two organizations being present.
century that it was built over a site which was the hammer blows, while government looked on. The
place where Ram was born and where a Ram entire country was shocked. Communal riots broke
temple had existed. Issue came to forefront in out in many parts of the country, the worst hit
December 1949 when a district magistrate permitted being Bombay, Calcutta and Bhopal. The riots in
a few Hindus to enter the mosque and install idols Bombay lasted for nearly a month. In all more than
CH
of Sita and Ram there. Sardar Patel, as the Home 3,000 people were killed in the riots all over India.
Minister, and Jawaharlal Nehru condemmed the MUMBAI RIOTS and 1993 BLASTS
district magistrate's action, but the Uttar Pradesh
government felt that it could not reverse the It is 20 years since two cataclysmic events shook
decision. However, it locked the mosque. The Bombay now Mumbai. Firstthe communal
situation was more or less accepted by all as a carnage spread over two monthsSecond, the
serial blasts of March 12, 1993, with which terror
temporary solution for the period of the dispute in
came home to the city and claiming innocent lives.
the court.
The Srikrishna Commission, in its final report, said
In 1983, VHP started a public campaign the riots appeared to have been a causative factor
demanding the 'liberation' of the Ram Janmab- for the bomb blasts. Supreme Court has finally
hoomi, which would entail the demolition of the disposed of appeals by death row convicts and actor
mosque and the erection of a Ram temple in its Sanjay Dutt in the March 12, 1993 serial blasts
place. Many political parties and groups did not case on March 21, 2013.
do anything to counter the campaign; they just Latur earthquake
ignored it. On 1 February, 1986, the district judge
reopened the mosque, gave Hindu priests its In 1993, a strong earthquake in Latur,
possession, and permitted Hindus to worship there. Maharashtra killed nearly 10,000 people and
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the Janata Dal emerged to form a government
ACQUITTAL
known as the United Front. A United Front
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government under former Chief Minister of
In July 1993, Rao's government was facing a no-
Karnataka, H.D. Deve Gowda lasted less than a
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confidence motion, because the opposition felt that
year. The leader of the Congress Party withdrew
it did not have sufficient numbers to prove a
his support in March 1997. Inder Kumar
majority. It was alleged that Rao, through a
EM
Gujral replaced Deve Gowda as the consensus
representative, offered millions of rupees to
choice for Prime Minister of a 16-party United Front
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members of the Jharkhand Mukti Morcha (JMM),
coalition. In November 1997, the Congress Party
and possibly a breakaway faction of the Janata Dal,
again withdrew support for the United Front. New
to vote for him during the confidence motion.
elections in February 1998 brought the BJP the
Before his death, Rao was acquitted of all the cases
largest number of seats in Parliament (182), but
AC I
charged against him.
In the 1996 general elections, Rao's Congress
this fell far short of a majority.
Party was badly defeated and he had to step down GUJRAL DOCTRINE
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as Prime Minister. He retained the leadership of
the Congress party until late 1996 after which he The Gujral Doctrine is a set of five principles to
was replaced by Sitaram Kesri. Suffice it to say that guide the conduct of foreign relations with
Narasimha Raos regime, despite its many Indias immediate neighbours, notably Pakistan, as
achievements which are likely to be placed in a spelt out by Gujral. The United Front Governments
more favourable light with a longer historical neighbourhood policy stood on five basic principles:
perspective, tended to lose steam in the last two First, with the neighbours like Nepal, Bangladesh,
years, with a slowing down of economic reforms, Bhutan, Maldives and Sri Lanka, India does not
surfacing of corruption charges and the hawala ask for reciprocity but gives all that it can in good
scandal which led to charges, later found to be faith and trust. Secondly, no South Asian country
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[46] Chronicle IAS Academy
A.B
A.B.. VAJPAYEE
VAJPA CHRONICLE
IAS ACADEMY
TENURE (ND A-I)
(NDA-I) A CIVIL SERVICES CHRONICLE INITIATIVE
E
In November 1997, the Congress Party again Prime Minister Vajpayee met with Pakistan's
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withdrew support for the United Front. New President Pervez Musharraf in the first summit
elections in February 1998 brought the BJP the between Pakistan and India in more than two years
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largest number of seats in Parliament (182), but in middle of 2001. But, the meeting failed without
this fell far short of a majority. On 20 March, 1998, a breakthrough or even a joint statement because
EM
the President inaugurated a BJP-led coalition of differences over Kashmir region
government with Vajpayee again serving as Prime
C
Minister. On 11 and 13 May, 1998, this government Following the 11 September attacks, the United
conducted a series of underground nuclear weapons States lifted sanctions which it imposed against
tests which caused Pakistan to conduct its own India and Pakistan in 1998. The move was seen as
tests that same year. India's nuclear tests prompted a reward for their support for the War on Terror.
AC I
President of the United States Bill Clinton and Japan
to impose economic sanctions on India pursuant to
India and Pakistan agreed to resume direct air links
and to allow overflights and a groundbreaking
the 1994 Nuclear Proliferation Prevention Act and meeting was held between the Indian government
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led to widespread international condemnation. and moderate Kashmir separatists. The Golden
Quadrilateral project aimed to link India's corners
In the early months of 1999, Prime Minister
with a network of modern highways.
Vajpayee made a historic bus trip to Pakistan and
met with Pakistan's Prime Minister Nawaz Sharif,
and signed the bilateral Lahore peace declaration.
ECONOMIC POLICY
In April 1999, the coalition government led by Ninth Five-Year Plan (19972000)
the Bharatiya Janata Party (BJP) fell apart, leading
The Ninth Five-Year Plan came after 50 years
to fresh elections in September. In May and June
1999, India discovered an elaborate campaign of of Indian Independence. Atal Bihari Vajpayee was
the Prime Minister of India during the Ninth Five-
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forces killed Pakistan-backed infiltrators and spheres of the country in an effort to achieve the
reclaimed important border posts in high-altitude complete elimination of poverty. The satisfactory
warfare. implementation of the Eighth Five-Year Plan also
Soaring on popularity earned following the ensured the states' ability to proceed on the path of
successful conclusion of the Kargil conflict, faster development. The Ninth Five-Year Plan also
the National Democratic Alliance - a new coalition saw joint efforts from the public and the private
led by the BJP - gained a majority to form a sectors in ensuring economic development of the
government with Vajpayee as Prime Minister in country. In addition, the Ninth Five-Year Plan saw
October 1999. End of the millennium was contributions towards development from the general
devastating to India, as a cyclone hit Orissa, killing public as well as governmental agencies in both
at least 10,000 under Vajpayee Government. the rural and urban areas of the country. New
implementation measures in the form of Special
In 2000 May, India's population exceeded
1 billion. President of the United States Bill Action Plans (SAPs) were evolved during the Ninth
Clinton made a groundbreaking visit to India to Five-Year Plan to fulfil targets within the stipulated
improve ties between the two nations. In January, time with adequate resources. The SAPs covered
massive earthquakes hit Gujarat state, killing at least the areas of social infrastructure, agriculture,
30,000. information technology and Water policy.
E
Year Plan. In the total outlay, the share of the centre to increase employment.
was approximately 57% while it was 43% for the Enhancing high rates of export to achieve
states and the union territories.
Y
self-reliance.
The Ninth Five-Year Plan focused on the Providing services like electricity, telecomm-
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relationship between the rapid economic growth unication, railways, etc.
and the quality of life for the people of the country. Special plans to empower the socially
EM
The prime focus of this plan was to increase growth disadvantaged classes of the country.
C
in the country with an emphasis on social justice Involvement and participation of Panchayati
and equity. The Ninth Five-Year Plan placed Raj institutions/bodies and Nagar Palikas
considerable importance on combining growth in the development process.
oriented policies with the mission of achieving the
desired objective of improving policies which would
AC I
work towards the improvement of the poor in the
country. The Ninth Five-Year Plan also aimed at
Performance
The Ninth Five-Year Plan achieved a GDP
correcting the historical inequalities which were still growth rate of 5.4% against a target of 6.5%.
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prevalent in the society. The agriculture industry grew at a rate of
2.1% against the target of 4.2%.
Objectives The industrial growth in the country was
4.5% which was higher than that of the
The main objective of the Ninth Five-Year Plan
target of 3%.
was to correct historical inequalities and increase
the economic growth in the country. Other aspects The service industry had a growth rate of
which constituted the Ninth Five-Year Plan were: 7.8%.
An average annual growth rate of 6.7%
Population control.
was reached.
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In March 2000, Bill Clinton, the President of the secondary schools.
United States, paid a state visit to India. His was
Nuclear tests (Operation Shakti)
Y
the first state visit to India by a U.S. President in
22 years. President Clinton's visit to India was hailed In May 1998, India conducted five underground
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as a significant milestone in the relations between nuclear tests in Pokhran desert in Rajasthan, 24 yrs
the two countries. Since the visit came barely two after India conducted its first nuclear test
years after the Pokhran tests, and one year after Pokhran-I in 1974. This test was called Pokhran-II.
EM
the Kargil invasion and the subsequent coup in The tests were held just a month after the
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Pakistan, it was read to reflect a major shift in the government had been in power. Two weeks
post-Cold War U.S. foreign policy. The Indian Prime later, Pakistan respo-nded with its own nuclear tests
Minister and the U.S. President discussed strategic making it the newest declared nation with nuclear
issues, but the major achievement was a significant weapons.
AC I
expansion in trade and economic ties. The Historic
Vision Document on the future course of relations
While some nations, such as Russia and France,
endorsed India's right to defensive nuclear
between the two countries was signed by
power, others including the United States, Canada,
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Prime Minister Vajpayee and President Clinton
Japan, Britain and the European Union imposed
during the visit.
sanctions on information, resources and technology
Vajpayee promoted pro-business, free market to India. In spite of the intense international
reforms to reinvigorate India's economic criticism and the steady decline in foreign
transformation and expansion that were started investment and trade, the nuclear tests were
by the former PM Narasimha Rao but stalled after popular domestically. Effectively the international
1996 due to unstable governments and the 1997 sanctions failed completely in swaying India's
Asian financial crisis. Increased competitiveness, decision to weaponize their nuclear capability,
extra funding and support for the information something that was planned for and anticipated
by the Vajpayee administration.
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meaning, since Pakistani establishment was more Ultimately Lok Sabha was dissolved and elections
interested in riding a bus to Kargil than the bus of were to be held under Vajpayees caretaker
Y
friendship. government. But unexpected events of Kargil forced
the election commission to postpone the elections
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The two countries signed, what became known
for the time being. What seemed to ordinary Indians
as Lahore declaration. Emphasis was laid on solving
as a routine attempt by Pakistani Army to push in
the disputes between them through negotiations.
EM
militants in Kashmir valley, turned out to be a full-
Hopes were seen of a bright future, visions were
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scale war when Indian Air Force started carrying
created. But all the euphoria led nowhere,
out repeated air raids over the hillocks of Kargil.
ultimately Lahore proved to be the biggest blunder
in Vajpayees career. Afghani mercenaries, who had become rugged
AC I and war-crazy after so many years of successful
An extremely cold place, Kargil is often termed
struggle against the Russians in Afghanistan had
as a no-mans land. With very little human
camped over large number of strategically placed
habitation what could be seen there is snow-tipped
hills in and around Kargil region. Removing them
mountainous terrain and Indian army trucks criss-
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using conventional methods would have been
crossing Kargil on its way to Ladakh. Strategically
impossible, finding no other alternatives
Kargil is highly important for India, as it is the
Prime Minister Vajpayee ordered lightening air
only road connection between the Kashmir valley
raids over those bunkers. The air raids were
and Ladakh. For Indian army it is the supply route
followed by military push. Guns like Bofors were
for all the essential items needed to survive in
used for the first time by the armed forces.
Ladakh and Siachen. Siachen has been the bone of
contention between both India and Pakistan. Heavy bombardment both by the Indian Army
Overlooking Karakoram pass, which connects and the Air Force destroyed the capabilities of the
Pakistan Occupied Kashmir (POK) with China, Afghani mercenaries and also dashed the hopes of
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Siachen has been under Indian occupation since Pakistan, which dreamt of repeating Afghanistan
80s. Repeated attempts by Pakistan to capture the in Kashmir too.
glacier have failed. Kargil was an attempt by
Indian Airlines hijack
Pakistan, to cut supply routes to Siachen and
ultimately wrest it from India. It was a carefully A national crisis emerged in December 1999,
CH
thought out strategy of the Pakistani military when Indian Airlines flight IC-814 from
establishment. Using Afghani and Sudanese Kathmandu to New Delhi was hijacked by five
mercenaries, backed by the regular Pakistani army, terrorists and flown to Taliban-ruled Afghanistan.
it infiltrated and captured the heights near the The hijackers made several demands including the
SrinagarLeh national highway. The plan was to release of certain terrorists like Maulana Masood
use these heights to capture the highway, ultimately Azhar from prison. Under extreme pressure, the
cutting off the supply routes to Siachen and government ultimately caved in. Jaswant Singh, the
Ladakh. The infiltration was a slow process in order Minister for External Affairs at the time, flew with
to prevent Indian armed forces from detecting it. It the terrorists to Afghanistan and exchanged them
started soon after the Lahore bus journey of for the passengers.
Vajpayee. By April 1999, the infiltration had
Attack on Indian Parliament
reached dangerous proportions. Government was
taken by surprise when few army men on routine The 2001 Indian Parliament attack was a high-
mission of touring the checkposts in the bordering profile attack on the Parliament of India, housing
areas of Kargil went missing. Soon aerial surveys in New Delhi by Lashkar-e-Taiba and Jaish-e-
for the missing revealed huge illegal bunkers created Mohammed terrorists. The attack led to the death
in hilltops. It was clear that Pakistan had again of a dozen people, including one civilian and to
backstabbed and all the hard works of Lahore had increased tensions between India and Pakistan,
[50] Chronicle IAS Academy
resulting in 20012002 India-Pakistan standoff. On sentenced to the death penalty for the incident.
13 December, 2001, five terrorists infiltrated the
Godhra Train Burning and Gujrat Riots
Parliament House in a car with Home Ministry
and Parliament labels. While both the Rajya Sabha The story began on the morning of 27 February
and Lok Sabha had been adjourned 40 minutes at Godhra town in Gujarat, where a bogy of the
prior to the incident, many Members of Parliament Sabarmati Express caught fire. 58 people, including
(MPs) and government officials were believed to 15 women and 20 children, were burnt to death in
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have still been in the building at the time of the the fire. The victims were all Hindus, Karsevaks or
attack. volunteers returning from participating in a yagya
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or religious ceremony at Ayodhya.
One gunman's suicide vest exploded when he
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was shot dead; the other four gunmen were also On 28 February began a wave of communal
killed. Five policemen, a Parliament security guard, riots that continued for almost three months. The
and a gardener were killed, and 18 others were
EM
police and administration allegedly looked the other
injured. The ministers and MPs escaped unhurt. way or even connived and helped. Many observers
C
have remarked that what distinguished the events
Indian Government initially accused Lashkar-
of 2002 was that, unlike a typical riot situation in
e-Taiba and Jaish-e-Mohammed to be involved in
which two groups engage in, usually spontaneous,
this attack. However, Lashkar-e-Taiba denied any
violence, the assault was one-sided, premeditated,
AC I
involvement in the incident. In December 2002, four
JeM members were caught by Indian authorities
brutal, and supported or facilitated by the state.
The Gujarat events shook the conscience of the
and put on trial. All four were found guilty of
nation. Many high profile cases are being fought in
playing various roles in the incident, although the
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courts and it is believed by many that judiciary
fourth, Afsan/Navjot Sandhu, wife of Shaukat
Hussain (one of the accused) was found guilty of alongwith certain well-known faces are fighting
a minor charge of concealing knowledge of the seemingly eternal fight against the biggest
conspiracy. One of the accused, Afzal Guru, was enemy of State i.e., Communalism.
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In January 2004, Prime Minister Vajpayee President, Pratibha Patil. In 2008 October, India
Y
recommended early dissolution of the Lok successfully launched its first mission to the moon,
Sabha and general elections. The Congress Party- the unmanned lunar probe called Chandrayaan-1.
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led alliance won in elections held in May In the previous year, India had launched its first
2004. Manmohan Singh became the Prime Minister. commercial space rocket, carrying an Italian
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The Congress formed a coalition called the United satellite.
Progressive Alliance with Socialist and regional
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In November 2008, Mumbai attacks took place
parties, and enjoyed the outside support of
and India blamed militants from Pakistan for the
India's Communist parties. Manmohan Singh
attacks and announced "pause" in the ongoing
became the first Sikh and non-Hindu to date to hold
peace process. In the Indian General Election in
India's most powerful office. Mr. Singh continued
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economic liberalisation, although the need for
support from Indian Socialists and Communists
2009, the United Progressive Alliance won a
convincing and resounding 262 seats, with
Congress alone winning 206 seats. In mid-
forestalled further privatisation for some time.
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2011, Anna Hazare, a prominent social activist,
By the end of the year 2004, India began to staged a 12-day hunger strike in Delhi in protest at
withdraw some of its troops from Kashmir. And state corruption, after government proposals to
by middle next year the Srinagar-Muzaffarabad Bus tighten up the anti-graft legislation which fell short
Service was inaugurated, the first in 60 years to of his demands.
operate between Indian-administered and
Despite all this, India showed great promise
Pakistani-administered Kashmirs.
with a higher growth rate in Gross domestic
In 2006 February, the United Progressive product. In January 2011, India assumed a non-
Alliance government launched India's largest-ever permanent seat in the United Nations Security
rural jobs scheme, aimed at lifting around 60 million Council for the 2011-12 term. In 2004, India had
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According to the nuclear deal, the United States Naxalite-Maoist rebels, in the words of Prime
will give India access to civilian nuclear technology Minister Manmohan Singh, India's greatest internal
while India agrees to greater scrutiny for its nuclear security challenge and other terrorist tensions. India
programme. Later United States approved a in the new millennium, improved relations with
controversial law allowing India to buy their many countries and foreign unions including the
nuclear reactors and fuel for the first time in 30 United States, the European Union, Israel and the
years. In 2008 July, the United Progressive Alliance People's Republic of China.
survived a vote of confidence brought after left-wing
parties withdraw their support over the nuclear ECONOMIC POLICY
deal. After the vote, several left-wing and regional
parties form new alliance to oppose government, Following the advice of International Monetary
saying it has been tainted by corruption. Within Fund in 1991, Singh as Finance Minister, freed India
three months, following approval by the American from the Licence Raj, source of slow economic
Congress, George W. Bush signed into law a nuclear growth and corruption in the Indian economy for
deal with India, which ended a three-decade ban decades. He liberalised the Indian economy,
on American nuclear trade with Delhi. allowing it to speed up development dramatically.
During his term as Prime Minister, Singh continued
In 2007, India got its first female sworn in
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economist, Jeffrey Sachs. In 2006, his Government
fastest growing major economy in the world.
implemented the proposal to reserve 27% of seats
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Singh's government has continued the Golden in All India Institute of Medical Studies (AIIMS),
Quadrilateral and the highway modernisation Indian Institutes of Technology (IITs), the Indian
AD L
program that was initiated by Vajpayee's govern- Institutes of Management (IIMs) and other central
ment. Singh has also been working on reforming institutions of higher education for Other
the banking and financial sectors, as well as public Backward Classes which led to 2006 Indian anti-
EM
sector companies. The Finance ministry has been reservation protests.
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working towards relieving farmers of their debt
Eight more IIT's were opened in the states
and has been working towards pro-industry
of Andhra Pradesh, Bihar, Gujarat, Orissa, Punjab,
policies. In 2005, Singh's government introduced
Madhya Pradesh, Rajasthan and Himachal
the value added tax, replacing sales tax. In 2007
AC I
and early 2008, the global problem of inflation
impacted India.
Pradesh. The Singh government also continued
the Sarva Shiksha Abhiyan programme. The
programme includes the introduction and
Tenth Plan (2002-2007) improvement of mid-day meals and the opening of
S ON
schools all over India, especially in rural areas, to
The main objectives of the Tenth Five-Year Plan
fight illiteracy.
were:
Attain 8% GDP growth per year. SECURITY AND HOME AFFAIRS
Reduction of poverty rate by 5% by 2007.
Singh's government has been instrumental in
Providing gainful and high-quality strengthening anti-terror laws with amendments
employment at least to the addition to the to Unlawful Activities (Prevention) Act (UAPA).
labour force. National Investigation Agency (India) (NIA) was
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Pakistan-India gas pipeline have taken place. New
Manmohan Singh has continued the pragmatic
Delhi hosted an IndiaAfrica Summit in April 2006
foreign policy that was started by P.V. Narasimha
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which was attended by the leaders of 15 African
Rao and continued by Bharatiya Janata Party's Atal
states. Relations have improved with other
Bihari Vajpayee. Singh has continued the peace
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developing countries, particularly Brazil and South
process with Pakistan initiated by his predecessor,
Africa. Singh carried forward the momentum
Atal Bihari Vajpayee. Exchange of high-level visits
which was established after the "Brasilia
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by top leaders from both countries have highlighted
Declaration" in 2003 and the IBSA Dialogue
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his tenure. Efforts have been made during Singh's
Forum was formed.
tenure to end the border dispute with People's
Republic of China. In November 2006, Chinese Singh's government has also been especially
President Hu Jintao visited India which was
AC I keen on expanding ties with Israel. Since 2003, the
followed by Singh's visit to Beijing in January 2008. two countries have made significant investments
A major development in Sino-Indian relations was in each other and Israel now rivals Russia to
the reopening of the Nathula Pass in 2006 after become India's defence partner. Though there have
being closed for more than four decades. As of been a few diplomatic glitches between India and
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2010, the People's Republic of China is the second Russia, especially over the delay and price hike of
biggest trade partner of India. several Russian weapons to be delivered to
India, relations between the two remain strong with
Relations with Afghanistan have also improved
India and Russia signing various agreements to
considerably, with India now becoming the largest
increase defence, nuclear energy and space
regional donor to Afghanistan. During Afghan
cooperation.
President Hamid Karzai's visit to New Delhi in
August 2008, Manmohan Singh increased the aid
15TH LOK SABHA
package to Afghanistan for the development of
more schools, health clinics, infrastructure, and
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stronger ties with the United States. He visited the new government under the incumbent Singh, who
United States in July 2005 initiating negotiations became the first Prime Minister since Jawaharlal
over the Indo-US civilian nuclear agreement. This Nehru in 1962 to win re-election after completing
was followed by George W. Bush's successful visit a full five-year term. The Congress and its allies
to India in March 2006, during which the were able to put together a comfortable majority
declaration over the nuclear agreement was made, with support from 322 members out of 543
giving India access to American nuclear fuel and members of the House.
technology while India will have to
The 2009 Indian general election was the largest
allow IAEA inspection of its civil nuclear reactors.
democratic election in the world held to date, with
After more than two years for more negotiations,
an eligible electorate of 714 million. Last two years
followed by approval from the IAEA, Nuclear
of his tenure were marred by various scams like
Suppliers Group and the U.S. Congress, India and
CWG scam, Coal Gate scam, 2G scam, etc. and
the U.S. signed the agreement on 10 October, 2008
policy paralysis.
with Pranab Mukherjee representing India.
After 30 years the BJP was able to gain majority
Singh had the first official state visit to the White
of its own and became the largest party in 16th
House during the administration of U.S. President
Lok Sabha and ended a collation era. The NDA
Barack Obama. The visit took place in November
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all SAARC leaders to attend his swearing-in
Pakistan. A trial court on 6 May, 2010, sentenced
ceremony; the attendees included Prime Minister of
Ajmal Kasab to death on all the 86 charges for
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Pakistan Nawaz Sharif, Sri Lankan President
which he was convicted. On his appeal against this
Mahinda Rajapaksa, Afghanistan President Hamid
verdict, Bombay High Court on 21 February,
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Karzai, Bhutan Prime Minister Tshering Tobgay,
2011, and Supreme Court of India on 29 August,
Nepal Prime Minister Sushil Koirala, Maldives
2012, upheld his death sentence. Kasab was
President Abdulla Yameen Abdul Gayoom
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executed by hanging at Yerwada Jail in Pune on
and speaker of Bangladesh Shirin Sharmin
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21 November, 2012.
Chaudhury and Prime Minister Navin Ramgoolam
of Mauritius (SAARC observer). Mumbai attacks once again proved Indian stand
right that Pakistan is directly involved in
MUMBAI TERRORIST ATTACK (2008) propagating terrorism in India.
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The 2008 Mumbai attacks were twelve COMMONWEALTH GAMES (2010)
coordinated shooting and bombing terrorist attacks
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lasting four days across Mumbai, India's largest The 2010 Commonwealth Games, officially
city, by members of Lashkar-e-Taiba. Ajmal Kasab, known as the XIX Commonwealth Games, were
the only attacker who was captured alive, later held in Delhi, India, from 3 to 14 October, 2010. A
confessed upon interrogation that the attacks were total of 6,081 athletes from 71 Commonwealth
conducted with the support of Pakistan's ISI. The nations and dependencies competed in 21
attacks, which drew widespread global condem- sports and 272 events, making it the largest
nation, began on Wednesday, 26 November and Commonwealth Games to date. It was also the
lasted until Saturday, 29 November, 2008, killing largest international multi-sport event to be staged
164 people and wounding at least 308. in Delhi and India, eclipsing the Asian Games
in 1951 and 1982. The opening and closing cere-
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communicate, and raise awareness. The protests be based on recommendation of the Central
were nonpartisan and most protesters were hostile Vigilance Commission.
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to attempts made by political parties to use them
to strengthen their own political agendas. Director of prosecution will also have a fixed
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tenure of two years like CBI chief.
THE LOKPAL AND LOKAYUKTAS Transfer of CBI officers investigating cases
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ACT, 2013 referred by Lokpal with the approval of
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watchdog.
The historic Lokpal and Lokayuktas Act,
Bill incorporates provisions for attachment
2013 was passed by Indian Parliament paving the
and confiscation of property acquired by
way for establishment of an Lokpal (Ombudsman)
corrupt means, even while prosecution is
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to fight corruption in public offices and ensure
accountability on the part of public officials,
including the Prime Minister, but with some
pending.
Bill lays down clear timelines for
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safeguards. preliminary enquiry and investigation and
trial. Provides for special courts Public
Lokpal will consist of a chairperson and a
servants will not present their view before
maximum of eight members, of which 50% will
preliminary enquiry if the case requires
be judicial members 50% members of Lokpal shall
be from SC/ST/OBCs, minorities and women. 'element of surprise' like raids and searches.
Selection of chairperson and members of Lokpal Bill grants powers to Lokpal to sanction
through a selection committee consisting of PM, prosecution against public servants.
Speaker of Lok Sabha, leader of opposition in Lok
Sabha, Chief Justice of India or a sitting Supreme CBI may appoint a panel of advocates with
Court judge nominated by CJI. Eminent jurist to be approval of Lokpal, CBI will not have to
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successor state of Andhra Pradesh for upto ten years.
of Indian Penal Code, Indian Evidence Act, and
Code of Criminal Procedure, 1973 on laws related Telangana is bordered by the states of
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to sexual offences. The Bill received Presidential Maharashtra to the north and northwest,
assent on 2 April, 2013 and deemed to came into Karnataka to the west, Chhattisgarh to the north-
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force from 3 February, 2013. It was originally east, and Andhra Pradesh to the south and east.
an Ordinance promulgated by the President of Telangana has an area of 114,840 square kilometres
(44,340 sq. mi), and a population of 35,286,757 (2011
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India, Pranab Mukherjee, on 3 February, 2013, in
census). Hyderabad, Secunderabad, Warangal,
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light of the protests in the 2012 Delhi gang rape
Karimnagar and Nizamabad are the major cities in
case.
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in July 1991 included allowing foreign firms to own
ECONOMIC & FOREIGN POLICY
Y
a 51 per cent stake in joint ventures in India instead
SINCE 1991 of the previous 40 per cent. The government also
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eliminated requirements for some 7,500 licenses,
Until 1991, Indias policy makers followed eliminated financial support for in form of export
EM
misguided policies that closed the economy to subsidies, and allowed exporters to keep 30 per
international trade, erected inefficient industries cent of their net foreign exchange earnings (an
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under state guidance, riddled the private sector with increase from 5-10 per cent).
extraordinarily cumbersome and detailed
On December 5, 1991, the World Bank made
regulations, and suffocated private economic
its largest Structural Adjustment Loan to date: $500
activity with controls and bureaucratic impedi-
AC I
ments. Then in 1991, the big breakthrough
happened. Spurred by a balance of payments crisis,
to India. The watershed reforms contained in the
first budget the new Narasimha Rao government
submitted in June excited the Bank, and fast track
Indian policy makers turned to technocrats such
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negotiations began. Initially, India was to receive
as Manmohan Singh, who promptly began the
$300 million, followed by the remaining $200
process of liberalizing the economy. Trade barriers
million a year later if the structural adjustment
were slashed, foreign investment was welcomed,
policies it agreed to remained in place.
the License Raj was dismantled, and privatization
began. The economy started to boom, with software Before 1991, India was a nation with political
exports and call centers leading the way. independence but no economic freedom. If the
license and permit tied India down, they also stifled
Foreign lending had virtually dried up, the
individual aspirations. In the early 1990s, India's
government was forced to sell 20 tonnes of gold to
post independence development pattern of strong
the Union Bank of Switzerland in March 1991 to
centralized planning, regulation and control of
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New Economic Policy of 1991 was a Structural intelligentsia. During this period, considerable
Adjustment Program that allowed India to qualify progress was made in loosening government
for aid from the World Bank and IMF. In 1990, regulations, especially in the area of foreign trade.
India faced an economic crisis and was on the brink Many restrictions on private companies were lifted,
of default on its debts. Within weeks of announcing and new areas were opened to private capital.
the reform package, the government devalued the However, India remains one of the world's most
rupee by 23 per cent (The devaluation of the rupee tightly regulated major economies. Many powerful
had been advocated by the World Bank since vested interests, including private firms that have
October 1990, when it recommended a 20 per cent benefited from protectionism, labor unions, and
devaluation), raised interest rates, and effected much of the bureaucracy, opposed liberalization.
sharp cuts in subsidies on food and fertilizers and Besides, many analysts agree that the poor suffered
transfers to public enterprises. Over the next six most from the increased inflation rate and reduced
months, it abolished the complex system of growth rate.
industrial and import licensing, liberalized trade
Indias economic performance during the first
policy, and introduced measures to strengthen
three decades since independence was christened
capital markets and institutions.
the Hindu rate of growth, a term connoting a
Among other measures, the new policies disappointing but not disastrous outcome. That
announced by Prime Minister P.V. Narasimha Rao clich, of course, is gradually lapsing into disuse,
[58] Chronicle IAS Academy
thanks to the remarkable transformation in India investment was encouraged, and import regulations
during the last two decades. Since 1980, its were simplified. The average import-weighted tariff
economic growth rate has more than doubled, rising was reduced.
from 1.7 per cent (in per-capita terms) in 1950-
Despite these changes, the economy remained
1980 to 3.8 per cent in 1980-2000. Shackled by the
highly regulated by international standards.
socialist policies and the license-permit-quota raj
Moreover, although import duties had been lowered
(to use Rajajis memorable phrase) of the past, India
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substantially, they were still high compared to most
used to serve as the exemplar of development
other countries. Political successes in the mid-1990s
strategies gone wrong. It has now become the latest
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by nationalist-oriented political parties led to some
poster child for how economic growth can be
backlash against foreign investment in some parts
unleashed with a turn towards free markets and
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of India. In early 1995, official charges of serving
open trade. India has yet to catch up to Chinas
adulterated products were made against a KFC
growth rates, but thanks to its solid democratic
outlet in Bangalore, and Pepsi-Cola products were
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institutions and impressive performance in
smashed and advertisements defaced in New Delhi.
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information technology, the country is increasingly
The most serious backlash occurred in Maharashtra
vying with, if not displacing, China as the country
in August 1995 when the Bharatiya Janata Party
of the future in the eyes of many knowledgeable
led state government halted construction of a
observers.
US $2.8 million 2,015-megawatt gas-fired electric-
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By the early 1990s, economic changes led to
the growth in the number of Indians with
power plant being built near Bombay (Mumbai in
the Marathi language) by another United States
significant economic resources. About 10 million company, Enron Corporation. However these
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Indians are considered upper class, and roughly incidents remained more of an aberration.
300 million are part of the rapidly increasing middle
It is important to characterize appropriately this
class. Typical middle-class occupations include
attitudinal change that took place in the early 1980s.
owning a small business or being a corporate
A distinction need to be made between a pro-market
executive, lawyer, physician, white-collar worker,
and a pro-business orientation. The former focuses
or land-owning farmer. In the 1980s, the growth
on removing impediments to markets, and aims to
of the middle-class was reflected in the increased
achieve this through economic liberalization. It
consumption of consumer durables, such as
favors entrants and consumers. A pro-business
televisions, refrigerators, motorcycles, and
orientation, on the other hand, is one that focuses
automobiles. In the early 1990s, domestic and
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economic outlook was mixed. Most analysts taxes (all of which took place during the 1980s)
believed that economic liberalization would are examples of pro-business policies, while trade
continue, although there was disagreement about liberalization (which did not take place in any
the speed and scale of the measures that would be significant form until the 1990s) is the archetypal
implemented. It seemed likely that India would market-oriented policy.
come close to or equal the relatively impressive rate
Two decades of liberalization in India had a
of economic growth attained in the 1980s, but that
favorable impact on the overall growth rate of the
the poorest sections of the population might not
economy. This is major improvement given that
benefit.
Indias growth rate in the 1970s was very low at
By the mid-1990s, the number of sectors 3% and GDP growth in countries like Brazil,
reserved for public ownership was slashed, and Indonesia, Korea, and Mexico was more than twice
private-sector investment was encouraged in areas that of India. Though Indias average annual
such as energy, steel, oil refining and exploration, growth rate almost doubled in the eighties to 5.9%,
road building, air transportation, and telecommuni- it was still lower than the growth rate in China,
cations. An area still closed to the private sector in Korea and Indonesia. The pickup in GDP growth
the mid-1990s was defense industry. Foreign- has helped improve Indias global position.
exchange regulations were liberalized, foreign Consequently Indias position in the global economy
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new millennium were turbulent with oil price hikes, began in 2008. According to official estimates, India
the 9/11 terrorist attack in the US and a further achieved an economic growth rate of around 8 per
Y
global slowdown. Despite this, the Ninth Plan cent during the 11th Five Year Plan period (2007-
period, 1996-97 to 2000-01, experienced an average 12). Though, economic growth has slipped to
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GDP growth of 5.5 per cent per annum against the decades' low of 5 per cent in 2012-13, the first year
target of 6.5 per cent. This demonstrated the post- of the 12th Five-Year Plan, due to poor performance
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reform Indian economy's ability to ride through of farm, manufacturing and mining sectors,
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crisis years, maintaining growth rates well above fundamentals of economy are strong and return of
the 'Hindu rate' of 3 to 3.5 per cent Indian growth story is expected sooner. Despite
the global economic crisis that engulfed the whole
However, despite the low GDP growth in the
world Indian economy only slowed down and did
first year of the Tenth Plan and the poor
not go into a declining phase. That shows the
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performance of agriculture in the Plan period, 2002-
03 to 2006-07 growth rate was slightly below the
Plan target of 8 per cent. It was a big achievement.
resilience and inner strength of Indian Economy.
A hard landing to the discussion is being made
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A critical aspect in this connection is the savings here, because the current economic situation will
and investment generated by the economy. need some time to settle down and only after the
Consistently increasing rate of Gross Domestic present turmoil is over, one would be able to give
Savings and Investment as a proportion of GDP in an account of present developments in a non
the new millennium led to this type of growth rates. passionate historical way.
'Demographic dividend' in the form of high savings
rate was goings to continue as the already high LPG
proportion of the Indian population in the working
age group. To ensure fiscal responsibility in view India's leaders believed that industrialization
of higher growth rates, a step was taken with the was the key to economic development. This belief
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passing of the Fiscal Reforms and Budget was all the more convincing in India because of
Management Act (FRBMA) in August 2003. The the country's large size, substantial natural
Act was aimed at ensuring fiscal prudence. The resources, and desire to develop its own industries.
rules of the Act was aimed at ensuring that revenue The Industrial Policy Resolution of 1948 gave
deficits be reduced by half per cent or more of the
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engaged in finance, trading, mineral exploitation, industries, the sale of shares in selected public
manufacturing, utilities, and transportation. The enterprises, and tax reforms. Although many
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public sector was extensive and influential observers welcomed these changes and attributed
throughout the economy, although the value of its the faster growth rate of the economy in the late
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assets was small relative to the private sector. 1980s to them, others feared that these changes
would create more problems than they solved. The
Controls over prices, production, and the use
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growing dependence of the economy on imports,
of foreign exchange, which were imposed by the
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greater vulnerability of its balance of payments,
British during World War II, were reinstated soon
reliance on debt, and the consequent susceptibility
after independence. The Industries (Development
to outside pressures on economic policy directions
and Regulation) Act of 1951 and the Essential
caused concern. The increase in consumerism and
Commodities Act of 1955 (with subsequent
the display of conspicuous wealth by the elite
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additions) provided the legal framework for the
government to extend price controls that eventually
exacerbated these fears.
included steel, cement, drugs, nonferrous metals, But forces of liberalisation, privatisation and
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chemicals, fertilizer, coal, automobiles, tires and globalisation were not only strengthened with time,
tubes, cotton textiles, food grains, bread, butter, but also the horizontal spread of area under these
vegetable oils, and other commodities. By the late forces increased at a faster rate. Promotion of FDI
1950s, controls were pervasive, regulating (Foreign Direct Investment) by means of raising
investment in industry, prices of many commodities, the cap, constitution of Competition Commission
imports and exports, and the flow of foreign of India in place of MRTP act, liberal act on foreign
exchange. currency violations, easy sanction for FDI and FII
(Foreign Institutional Investors), etc. point towards
Export growth was long ignored. The
the above mentioned fact.
government's extensive controls and pervasive
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India's current economic reforms began in 1985 At another level, the country was also
when the government abolished some of its confronted with an unprecedented fiscal crisis
licensing regulations and other competition- partly as a consequence of the first Gulf War of
1991. Three factors contributed to this crisis. First,
Chronicle IAS Academy [61]
anticipating a spike in oil prices because of Saddam Second, at a regional level, even though the US
Husseins invasion and occupation of Kuwait, India Department of Commerce had anointed India as
had purchased considerable amounts of petroleum one of the worlds big emerging markets,
on the spot market thereby draining its treasury of American investment in and trade with India was
much-needed foreign exchange. Second, the so negligible that the nonproliferation issue
government of India was forced to repatriate over overshadowed other interests.
a hundred thousand workers from the Persian Gulf
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Third and finally, at a bureaucratic level in
at short notice. Third, it lost the very substantial
both countries the shadow of the past weighed
remittances that the workers from the Gulf had
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heavily on all deliberations. Most Indian foreign
contributed to the Indian exchequer. The confluence
policy bureaucrats looked were dubious about
of these three factors placed the country in dire
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American goals and interests in South Asia and
financial straits. Faced with his extraordinary crisis
there was lingering distrust of India in both the
and also confronting the loss of the vast East
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European market as a consequence of the Soviet State and Defense departments in the United States.
These mutual misgivings hobbled the growth of
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collapse, Indias policymakers, most notably the
then Finance Minister Manmohan Singh, chose to the relationship even though some small progress
dramatically alter Indias domestic and international had been made in the last days of Indira Gandhi
economic policies. These involved abandoning and her son and successor Rajiv Gandhi. As a
the countrys historic commitment to import- consequence of these three factors, improvements
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substituting industrialization, unbundling, though
fitfully at best, its vast public sector and dismantling
in relations were, at best fitful, and frequently
hostage to minor, episodic differences. For example,
a labyrinthine set of regulations, licenses, permits the Assistant Secretary of State Robin Raphaels
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and quotas which had largely stifled economic careless remark about Kashmirs accession to India
growth. at a press briefing in Washington, D.C. became a
major diplomatic contretemps.
Drastic changes were also undertaken in the
political arena. As argued earlier, Indias commit- However, Indian policymakers managed to
ment to non-alignment had already eroded in move with somewhat greater dexterity on other
practice, if not in rhetoric, in the post-Nehru era. fronts. To that end, they ended countrys reflexive
Now its policymakers sought to forge a new vision support for the Arab position on Israel and the
for the country. However, the country lacked a Palestinian question. Historically, since the creation
leader of the stature and intellectual proclivities of the state of Israel in 1948 India had adopted for
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of Jawaharlal Nehru. Yet, the Prime Minister, reasons of both domestic politics and national
Narasimha Rao, possessed a sufficient grasp of ideology, a mostly frosty approach toward the
international affairs to recognize the necessity of Jewish state. At home Indian policymakers were
charting a new course for the country in both attentive to the sentiments of the Muslim
domestic and international arenas. Accordingly, he population. At an ideological level they had viewed
CH
sought to chart a new course for the countrys the creation of Israel as the continuation of a
foreign policy. colonial policy. In 1992, in the wake of the Oslo
Accord between Israel and the Palestinians, India
This effort to alter the countrys foreign policy upgraded its diplomatic relations with Israel to the
orientation toward the emergent, sole superpower, ambassadorial level.
the United States ran into an important hurdle for
three compelling reasons. First, at a global level, Simultaneously, India also directed its gaze
the United States had few significant interests in toward South-East Asia after a long span of neglect.
India barring non-proliferation. This issue, of During much of the Cold War Indian policymakers
course, put the two sides on a collision course as had shunned the states of South-East Asia, with
India was a staunch opponent of the Nuclear Non- the critical exception of Vietnam. Now as part and
proliferation Treaty (NPT) and categorically refused parcel of the opening of its markets to foreign
to accede to its expectations. The US, especially, investment and seeking to develop a viable export
under the Clinton administration, was committed sector, the country embarked upon a Look East
to its indefinite and unconditional extension at the policy.
Review Conference in 1995. Not surprisingly, their
Closer to home, the Narasimha Rao regime
fundamental differences put the two countries at
efforts continued to improve relations with China,
odds.
[62] Chronicle IAS Academy
a process that had been initiated during the polemical writing had little to do with the
Rajiv Gandhi regime in the late 1980s. Even though ascendance of the right-of-center Bharatiya Janata
the two sides forged two important confidence- Party (BJP) to power. Instead it was closely tied to
building measures (CBMs) in 1993 and 1996 the successful extension of the NPT in 1995 and
designed to reduce tensions along the Line of Actual the seeming inexorable efforts of the Clinton
Control, little or no progress was made in resolving administration to conclude a comprehensive
the border dispute. nuclear test ban treaty. Fearful that the test ban
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treaty was all but inevitable Indian policymakers
Finally, relations with Pakistan, Indias long-
chose to exercise the nuclear option before
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standing adversary remained contentious as ever.
ineluctable pressures were brought to bear on India
In considerable part the relationship with Pakistan
to accede to the regime.
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deteriorated because of the outbreak of an ethno
religious insurgency in the dispute state of Jammu Despite the initial burst of hostility from the
and Kashmir in December 1989. The origins of this United States and the other great powers, the
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insurgency were mostly indigenous could be traced international community has come to grudgingly
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to a process of growing political mobilization accept India as a de facto nuclear weapons state.
against a backdrop of steady institutional decay. In large part this came about as a consequence of
However, with the outbreak of the insurgency extended bilateral negotiations between the U.S.
Pakistans policymakers quickly stepped into the Deputy Secretary of State, Strobe Talbott and
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fray and helped transform a largely internal
uprising into an ideologically charged, sanguinary,
Jaswant Singh, the Indian Minister for External
Affairs. Also their alarmist claims and fears about
extortion racket. a possible nuclear exchange between India and
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Pakistan have not materialized. Pakistans feckless
In an attempt to suppress the insurgency India
attempt to revive the Kashmir issue through its
resorted to a time-honored counterinsurgency
incursion in the Kargil region did contribute to a
strategy. This involved the substantial use of force
limited war between the two states in 1999.
against the insurgents but with the promise of free
However, despite the Pakistani provocation India
and fair elections once they proved willing to
exercised remarkable restraint and a large-scale war
abandon their secessionist agenda. As with other
was effectively avoided. Similarly, in the aftermath
counter insurgency operations, this strategy has met
of the terrorist attack on the Indian Parliament in
with some success. However, while it has reduced
December 2001 India resorted to a strategy of
the insurgency to manageable proportions, it has
coercive diplomacy albeit with mixed results.
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toward alleviating Indias energy needs. However, cession on this critical issue must be construed as
once consummated, its larger significance will lie recognition of Indias emerging potential as a great
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power in Asia and beyond.
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A summary of the key events in India according 1956
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to since independence in 1947.
Mar. 22 Angami Zapu Phizo declares the
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1947 formation of a Naga Central Government.
Full scale war between Naga rebels and the
Aug. 15 Indias First Independence Day army by the middle of 1956. War subsides
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Oct. 22 Armed tribals supported by by December.
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Pakistan invade Kashmir to dislodge 1957
Maharaja Hari Singh and secure Kashmir
for Pakistan. Apr. 5 EMS Namboodripad becomes CM
of Kerala after the victory of CPI in the
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Oct. 26 Hari Singh accedes Kashmir to
India in return for military help to ward
1962
assembly elections.
1950 war.
Jan. 26 Constitution comes into power, 1966
Republic Day.
Jan. 10 Tashkent Agreement signed
CH
1980 2002
Jan. 14 Indira Gandhi becomes Prime Feb. 27 Godhra train carnage, Hindu-
E
Minister again. Muslim riots ensue.
1984 2005
Y
Providing Jun. 3 Operation Blue Star to Jun. 15 Right to Information Act passed
AD L
flush out extremists from the Harimandir by the Parliament.
Sahib. 2008
EM
Oct. 31 Indira Gandhi assassinated by her Apr. 10 Supreme Court upholds the 27%
C
Sikh bodyguards; Hindu-Sikh riots ensue. OBC quota, taking reservation in IITs and
Her son Rajiv Gandhi becomes Prime IIMs to a whopping 49.5%.
Minister.
Nov. 26 Terror attacks in Mumbai at
Dec. 2/3 Bhopal Gas Tragedy. Hotels Taj and Oberoi, CST train terminal
AC I1985
2009
and other places.
1991
intended to establish strong legislation and
May 21 Rajiv Gandhi assassinated. enforcement against perceived endemic political
June 21 P.V. Narsimha Rao appoints corruption under the leadership of anti-
Manmohan Singh as his finance minister; corruption activist Anna Hazare.
CH
Dec. 22 Terror attack on the Red Fort by June 2 Telangana became the 29th state
LeT. of India.
[66] Chronicle IAS Academy